FMCG major Hindustan Unilever Limited (HUL) announced its June 2019 (Q1FY20) quarterly result on Monday, in-line with analysts' estimates. The top-line growth was on a single-digit note, but the bottom-line performance managed to secure double-digit rise. HUL posted a net profit of Rs 1,755 crore in Q1FY20, up by 14.10% from Rs 1,529 crore a year ago during the same period. Also, Q1FY20 PAT was up by 10.13% compared to Rs 1,538 crore in Q4FY19. A Bloomberg poll of analysts had predicted HUL PAT to come around Rs 1,720 crore during the quarter. Ahead of the result, HUL shares ended at Rs 1693.20  per piece gradually up by 0.86% on Sensex. 

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HUL's revenue from operation soared by 6.71% to Rs 9.984 crore in Q1, compared to Rs 9,356 crore in Q1FY19. In preceding quarter, revenue was at Rs 9,809 crore. Sanjiv Mehta, Chairman and Managing Director commented: Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins. Our focus on strengthening the core, leading market development & premiumisation, driving channel transformation and building brands with purpose, continues to serve us well."

Meanwhile, total income came in at Rs 10,261 crore up by 6.64% from Rs 9,622 crore in Q1FY19. While total income sequentially rose by 1.96% from Rs 10,063 crore in Q4FY19. 

As for total expenses, HUL recorded a 4.54% growth to Rs 7,705 crore in Q1 versus Rs 7,370 crore in Q1FY19. However, total expense plunged by 0.77% from Rs 7,765 crore in Q4FY19. 

Mehta added, "We continue to make good progress on our strategic initiatives to make sustainable living common place and build a business which is purpose led and future fit. We have received approval from our Shareholders and Creditors for the proposed merger with GSK CH and subject to NCLT approvals, are on track to complete the integration of the business before the end of 2019. We believe our business is well positioned to unlock the structural FMCG India opportunity as well as in terms of navigating the short-term challenges arising from softening of growth."

Margin expansion was driven by improved mix, leverage in operating and advertising spends and our savings agenda. Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs. 2647 Crores was up by 18% (13% on comparable basis after adjusting for accounting impact of Ind AS 116).