Hindustan Unilever stock declines nearly 4%, after net profit drops 2.76% at ₹2540 crore

The scrip of the company fell 3.8% to ₹2,253.85 apiece on the NSE.

On the BSE, Hindustan Unilever Ltd's (HUL) slipped 3.75% to ₹2,255 per piece.

The market is trading in the positive zone. The 30-share BSE Sensex rose 164.36 points or 0.22% to trade at 76,569.35 in the morning trade on Thursday. The broader NSE Nifty increased 63.45 points or 0.27% to 23,218.80.

FMCG major Hindustan Unilever on Wednesday reported a 19.18% rise in consolidated net profit at ₹2,989 crore in the December quarter, boosted by the sale of its 'Pureit' business.

The company, which posted a consolidated net profit of ₹2,508 crore in the same quarter of the last fiscal year, said it will acquire 90.5% shareholding of Uprising Science Pvt Ltd -- the firm behind the premium beauty brand Minimalist -- comprising secondary buyout for a cash consideration of ₹2,670 crore at a pre-money enterprise valuation of ₹2,955 crore.

In the third quarter of the ongoing fiscal year, the growth in profit after tax was majorly on account of profit from the divestment of Pureit business, HUL said in a regulatory filing.

Consolidated total income in the third quarter was at ₹16,050 crore as against ₹15,781 crore in the year-ago period.

Total expenses during the quarter were higher at ₹12,576 crore as compared to ₹12,305 crore in the same period a year ago, it added.

HUL further said its board has approved the demerger of its ice cream business into Kwality Wall's (India) Ltd with one equity share of KWIL to be allotted for every one equity share held in Hindustan Unilever Ltd (HUL).

Upon demerger and listing of KWIL (Kwality Wall's India Ltd), the entire shareholding of KWIL will be held directly by shareholders of HUL.

At 12:29 PM, shares of Hindustan Unilever were trading 0.77% lower at ₹2,324.80 apiece on the NSE.