The company had posted net profit of Rs 988.16 crore in the July-September quarter of the 2014-15.
HUL's net sales however climbed 4.74 percent to Rs 7,819.64 crore during the quarter under review as against Rs 7,465.54 crore a year ago, the company said in a statement.
"The growth in the quarter continued to be impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers," HUL added.
On the outlook, HUL Chairman Harish Manwani said, "The deflationary commodity cost environment is likely to continue in the near term and our strategy of delivering consistent and competitive growth with sustainable improvement in operating margin remains unchanged."
In a conference call, HUL Chief Financial Officer PB Balaji said the impact of phasing out of excise incentives would continue in the next two quarters till it cools down by around March.
HUL's expenses in the second quarter were up 3.58 percent to Rs 6,705.67 crore, as against Rs 6,473.68 crore a year ago. Tax expense was up 6.66 percent to Rs 445.47 crore, compared to 417.64 crore.
The company's revenue from soaps and detergents segment was up 1.63 per cent in the second quarter at Rs 3,816.57 crore, as against Rs 3,755.10 crore of the same quarter last fiscal.


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