India’s largest FMCG company hasn’t met market expectations

Shares of Hindustan Unilever, India's top FMCG company, slipped in trade after the company reported earnings that missed forecasts mainly on account of higher excise duty payments and a fall in the price of some of its products.

Hindustan Unilever fell 1.6 percent to 890.95 rupees after hitting a high of 917 rupees. More than 38 lakh shares were traded compared with a 5-day average of 7.8 lakh shares on the National Stock Exchange.

Hindustan Unilever said its first quarter Net Profit rose to 1,059 crores compared with 1,057 crores in the year ago quarter. The number was substantially below expectations of 1,110 crore rupees.

Similarly, Sales during April-June quarter stood at 8,105 crore rupees versus 7,716 crore rupees a year ago. Analysts had estimated a number of 8,320 crores. Hindustan Unilever said some of its factories in Himachal Pradesh and Uttaranchal had to pay higher excise duties after the 10-year moratorium got over.

Other financial parameters such as Operating margins were ahead of estimates: 18.6 percent vs 17.1 percent.

(Image credits: indianonlineselle)