Mumbai: Following a 1.79% drop in its net profit to Rs637.51-crore for the quarter ended December 2010, Hindustan Unilever (HUL), India's largest packaged consumer goods firm by sales, is considering increasing prices of some of its products to maintain its profit margins, reports PTI quoting a top company official.
"The cost inflation is going to remain high. We are focusing on total value-chain cost. There needs to be pricing action and it will have to be judicious," HUL's chief financial officer (CFO), R Sridhar, said in a conference call here, while declining to specify which categories would see a price rise.
The company has increased the price of its Rin powder besides most of its soap brands, Mr Sridhar said.
"In an inflationary environment, we will manage our business dynamically, through judicious pricing actions and an increased focus on cost effectiveness, while ensuring that we remain competitive in the market place," HUL chairman, Harish Manwani, said in a statement.
HUL reported a 1.79% decline in its net profit for the quarter ended 31 December 2010, at Rs637.51-crore due to high input cost inflation in the soaps and detergents segment. The company's total income during the third quarter of the current fiscal, however, increased by 12.12% to Rs5,127.71-crore from Rs4,573.23-crore in the year-ago period.
Although the domestic consumer business of HUL recorded a volume growth of 13%, its expenditures in purchase of various goods increased substantially during the three-month period, the company said.
Mumbai: The Reserve Bank of India (RBI) today upped the inflation projection to 7% by March-end, from the earlier estimated 5.5% and warned against a possible spill over of high food and energy prices to a more generalised inflation, reports PTI.
Earlier, the apex bank had projected inflation at 5.5% by March 2011 and the latest higher estimate is on account of high food, fuel prices high and persistent demand pressures building up in the economy.
The overall inflation for December shot up to 8.43% on high prices of food items, from 7.48% in November.
Food inflation remained in double digit through out December and was 15.52% for the week ended 8th January. It had touched a high of 18.32% in the week ended 25th December.
"As high inflation persists, the prospect of it spilling over to the general inflation is rapidly becoming a reality," the RBI said, while announcing the third quarter monetary policy review here.
It said prices of some commodities rose sharply in the recent period even as global recovery was fragile. "Should these trends continue, they will impact inflation, domestically and globally."
Asserting that the current demand-supply mismatch for some commodities will persist, it said, "...The baseline projection for wholesale price index (WPI) based inflation for March 2011 is revised upwards to 7% from 5.5%."
To cool inflation, the central bank today raised short-term lending (repo) rates and borrowing (reverse repo) rate by 0.25% (25 basis points) each.
The RBI said the food inflation is likely to remain high in the near term because of demand-supply mismatches in several non-cereal food items like pulses, oilseeds, eggs, fish, meat and milk.
"While the impact of transitory factors is expected to wane, the price pressures on account of demand-supply imbalances in respect of some commodities will persist," it said.
It said the food inflation has been rising for over two years now and the increase has been sharp in the recent period. "This cannot but have some spill-over effects on generalised inflation...," it said.
The central bank said there can be an up to 9 basis points impact on WPI-inflation owing to fuel and aviation turbine fuel (ATF) price hike.
Earlier in January, oil marketing companies had raised petrol prices by Rs2.50-Rs2.54 per litre and ATF prices by about 2% or Rs948.5 per kilolitre.
Tata Motors Ltd said, the year 2011 marks the 50th anniversary of Jaguar E-Type.
The company will mark the anniversary at the 2011 Geneva Motor Show and go on to celebrate at Goodwood's Revival and Festival of Speed, the Pebble Beach Concours d'Elegance, the Nurburgring Old Timer Grand Prix and a host of Jaguar customer, dealer and lifestyle events worldwide.
When it was launched in 1961, the appeal of E-Type transcended the automotive world. The iconic E-Type set new standards in automotive design and performance. Its influence is still apparent in Jaguar's modern range: cars that offer a blend of performance, comfort, cutting-edge technology and award-winning design.
E-Type owners included celebrities such as George Best, Brigitte Bardot, Tony Curtis and Steve McQueen.
On Tuesday, Tata Motors ended 1.91% down at Rs1,165.30 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.95% to 18.969.45 points.