Hindustan Unilever Limited = QTRLY REUSLTS = FOR Q3 fY 2012 = Q/E DEC,2011 = NET SALES UP 16.43%YoY; NPT UP 18.24% YoY

Hindustan Unilever Limited

NSE Symbol        HINDUNILVR

RESULTS TABLE ANALYSIS

Hindustan Unilever	31-Dec-11	30-Sep-11	%dif1	30-Jun-11	%dif2	31-Dec-10	%dif3
Net Sales	585273	552216	5.99	550389	6.34	502701	16.43
Other Operating Income	8490	8832	-3.87	7547	12.5	10070	-15.69
Increasein SIT/WIP	-2738	-5263	-47.98	19026	-114.4	-10299	-73.41
Raw Materials	234118	229054	2.21	211410	10.74	194151	20.59
Traded Goods	76128	76311	-0.24	76979	-1.11	73064	4.19
Employees Cost	27412	28731	-4.59	28623	-4.23	23104	18.65
Depreciation	5682	5710	-0.49	5620	1.1	5633	0.87
Other Expenditure	161794	149547	8.19	146471	10.46	160253	0.96
Total Expenditure	502396	484090	3.78	488129	2.92	445906	12.67
Profit from Operations	91367	76958	18.72	69807	30.89	66865	36.64
Other Income	8008	7767	3.1	5060	58.26	7702	3.97
Interest	45	54	-16.67	2	2150	6	650
Exceptional Items	1238	-4442	-127.9	-5875	-121.1	-6429	-119.26
Profit  before tax	98092	89113	10.08	80740	21.49	80990	21.12
Tax expense	22711	20221	12.31	18024	26	17239	31.74
Net Profit	75381	68892	9.42	62716	20.19	63751	18.24
Face Value (In Rs	1	1	0	1	0	1	0
Paid Up Equity	21610	21610	0	21607	0.01	21821	-0.97
Basic EPS	3.49	3.19	9.4	2.9	20.34	2.92	19.52
Public holding (%)	47.49	47.48	0.02	47.48	0.02	47.99	-1.04

Net Sales in Q3 FY12 stands at Rs.5852.73 cr – up by 5.99% from Q2 FY12; up by 6.34% from Q FY12; and up by   16.43% from Q3 FY11

Raw Materials in Q3 FY12 stands at Rs.2341.18 cr – up by 2.21 from Q2 FY 12; up by 10.74% from Q1 FY12; up by 20.59% from Q3 FY 11.

Other Expenditure in Q3 FY12 stands at Rs.1617.94 cr – up by 8.19% from Q2 FY 12; up by          10.46% from Q1 FY12; up by   0.96% from Q3 FY11

Total Expenditure      in Q3 FY12 stands at Rs.5023.96 cr – up by 3.78% from Q2 FY 12; up by      2.92% from Q1 FY12; up by     12.67% from Q3 FY11.

Profit from Operations in Q3 FY12 stands at Rs.913.67cr – up by 18.72% from Q2 FY 12; up by 30.89% from Q1 FY12; up by        36.64% from Q3 FY11.

Profit  before tax in Q3 FY12 stands at Rs.980.92cr – up by 10.08% from Q2 FY 12; up by          21.49 from Q1 FY12; up by 21.12% from Q3 FY11

Tax expense in Q3 FY12 stands at Rs.227.11 cr – up by 12.31% from Q2 FY 12; up by   26% from Q1 FY12; & up by 31.74% from Q3 FY11

Net Profit in Q3 FY12 stands at Rs.753.81cr – up by 9.42% from Q2 FY 12; up by 20.19%  from Q1 FY12; & up by   18.24% from Q3 FY11. The progress in the quarter is impressive. It has come down slightly because of Higher Taxation.

Face Value is Rs.1 per share

Basic EPS is Rs.3.49 in Q3 FY12; Rs.3.19 in 2 FY12; Rs.2.9 in Q1 FY12; and Rs.2.92 in Q3 FY11.

Annual EPS is likely to be around Rs.13.2 on FV of Rs.1

Current Market Price is Rs.379.30; while the  52 week high price is Rs.420.25 and the 52 week low price  is Rs.264.45.

The PE Ratio is 28.73.

HOW SEGMENTS PERFORMED

 During the quarter, Domestic Consumer business grew at 16.5% with strong underlying volume growth of 9.1%. All segments delivered double digit growth.

Soaps and Detergents grew by 21% with growth ahead of the market

Laundry registered a strong performance with double digit growth across all brands. Rin Bar and Surf Excel quickwash were re-launched during the quarter with an improved formulation. The business continued its focus on driving upgradation. Skin Cleansing delivered strong double digit growth across premium, popular and mass segments. Lux benefited from the re-launch in September quarter and Lifebuoy from its strong proposition of germ protection. Dove continues to drive category premiumization.

Personal Products delivered broad based volume led growth of 14% with strong performance in Skin and Hair

In Skin care, Fair and Lovely (FAL), Vaseline and Ponds grew in double digits. FAL core grew strongly while Vaseline and Ponds continue to lead market development and build segments of the future. During the quarter, Dove Body lotion was launched and Lakme portfolio expanded with the introduction of Lakme Absolute - a high performance long wear makeup range.

Hair grew ahead of the market with double digit growth in Dove, Clinic Plus and Clear. Dove growth momentum accelerated and the business doubled during the quarter. Oral Care registered modest growth in a competitive environment. Pepsodent G was re-launched during the quarter in the fast growing advance care segment.

Beverages delivered competitive growth of 11% with both Tea and Coffee growing in double digits

In Tea, growth was led by the premium portfolio. Taj Mahal registered strong growth in Modern Trade and 3 Roses strengthened its proposition of health and taste. Coffee delivered strong growth nationally with innovations leading premiumization of the category. Bru Gold (100% coffee) was successfully launched during the quarter.

Packaged Foods grew by 14% and continued to lead market development

Kissan delivered strong growth benefiting from the relaunch in September quarter. Knorr soups performance was muted on account of slowdown in market while Knorr soupy noodles were in line with plans. Soups range was expanded during the quarter with noodle variants and 'Cup-a-Soup'. Kwality Walls continued its strong growth momentum with exciting innovations and increased coverage.

Strategy on water business is on track with expansion of Pureit portfolio. The "Go to Market" transformation is expected to be completed by March 2012.

Inflationary pressures during the quarter were primarily on account of currency depreciation. Cost pressures were managed dynamically through aggressive savings programmes coupled with judicious pricing. Cost of Goods Sold was up by 140 bps. Brand investment continued to be competitive with A&P at 11.8% of turnover.

Profit before interest and tax (PBIT) grew by 37% with PBIT margin improving by 230 bps. Profit after tax but before exceptional items, PAT (bei), grew by 30% to Rs. 762 crores during the quarter. Net Profit at Rs.754 crores grew by 18%

Harish Manwani, Chairman commented: "We have delivered another strong quarter of competitive growth with improvement in margins. The results, delivered against a backdrop of an uncertain economic environment, are reflective of the strength of our brands, consistency in our strategy and relentless focus on execution. We will continue to manage our business dynamically to deliver competitive, profitable and sustainable growth."

SOME HIGH LIGHTS

1.  Domestic Consumer Business (FMCG + Water) grew by 16.5% with a 18.2% growth in HPC and 12.7% growth in Foods businesses.

2. The Scheme of Arrangement (the 'Scheme') for transfer of the FMCG Exports Business Division (the „demerged business undertaking‟) of the Company into its wholly owned subsidiary Unilever India Exports Limited ('UIEL'), has been sanctioned by the Hon'ble High Court of Bombay with the appointed date of 1st April, 2011 during the current quarter vide an order dated 18th November, 2011, certified copy of which was received on 5th December, 2011. The Scheme became effective from 1st January, 2012 (the 'effective date') upon filing of the said order with the Registrar of Companies of Mumbai. In accordance with the Scheme, the above transfer of demerged business undertaking will be accounted by the company as of the effective date by recording the transfer of the relevant assets and liabilities of the demerged business undertaking at their book values and the corresponding consideration received in the form of investment in the shares issued by UIEL. Accordingly, the financial results of the FMCG Exports Business Division continue to be reported as part of the Company's results for the current quarter.

3. The Board of Directors at their meeting held on 31st October, 2011 had declared an Interim Dividend of Rs 3.50 per share of Re.1/- each, for the current financial year . The dividend was paid on 22nd November, 2011.

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