The company said that the two periods are not strictly comparable as the previous year did not include the results of the erstwhile Pond's India. The annualised earnings per share has grown by 26.9 per cent to Rs 35 per share during the January-September period and by 30 per cent in the third quarter over the corresponding periods last year.

Commenting on the company's performance, HLL chairman KB Dadiseth said, "We will now get on with the task of achieving the synergies that are expected to come from this amalgamation."

The merger is effective January 1, 1998. Consequent to the amalgamation, the fast moving consumer goods (FMCG) giant's turnover has risen to Rs 7,138.21 crore in the nine-month period asagainst Rs 5,805.53 crore in the previous corresponding period.

The export turnover of the company, including that of its subsidiaries, is Rs 1,350 crore, a growth of over 60 per cent from Rs 840 crore posted in 1997.

The consolidated performance of the group as a whole, including its subsidiaries and the erstwhile Pond's India, for the nine-month period witnessed a 30 per cent increase in net profit and a 20 per cent increase in net sales over the corresponding period last year. This reflects the underlying performance of Unilever's Indian operations on a comparable basis.

For the third quarter ended September 30, 1998, the company has posted a net profit of Rs 223.37 crore and net sales of Rs 2,292.20 crore. Earnings per share (annualised) for the third quarter period represents a 30 per cent jump to Rs 40.69 from Rs 31.31 in the same period last year.

The HLL scrip fell by Rs 19 on the Bombay Stock Exchange on Tuesday to Rs 1,571 from the previous close of Rs 1,590.

According to a companyrelease, business restructuring costs have been provided for on the basis of the proportionate share of the revised estimate annual costs. This amounts to Rs 1.25 crore during the third quarter and Rs 56.25 crore for the year-to-date. The exceptional item pertains to the stamp duty of Rs 19.89 crore (net of tax Rs 12.93 crore) payable in respect of the amalgamation of Pond's with the company.

Depreciation at Rs 80.42 crore in the nine-month period is sharply higher than Rs 41.87 crore reported in the same period last year, consequent to investments in the Lakme trademarks and the on-going capital spend in the factories.

During the July-September period, operating profit was higher at Rs 775.08 crore, compared with Rs 548.69 crore last year. Operating profit margins improved to 10.85 per cent from 9.45 per cent with net margins also going up to 10.85 per cent from 9.45 per cent last year.

"We have continued our focus on volume growth and market development through consumer relevant innovations. As aresult, market shares increased in all key categories. The company has also initiated several steps to control costs and improve efficiencies," Dadiseth said.

Volumes growth on the back of product launches and relaunches has been about 10 per cent led by a 20 per cent growth in the fast growing personal products category, a 17 per cent growth in culinary products, a 71 per cent growth in branded staples and a 52 per cent growth in export tea.

Even at a mature stage of penetration, volumes of soaps and detergents grew by 5 per cent. Oils and fats business was boosted with a 10 per cent growth by consumer shift to branded products. However, packet tea volumes were stagnant due to the imposition of excise duty on packets of branded tea over 100 gm, coupled with a decline in tea commodity prices which has widened the price gap between branded packet tea and loose tea.

On reviewing its business portfolio, Dadiseth reiterated that the company will seek to divest the animal feeds and dairy businesses, and alsocreate one or more joint ventures in speciality chemicals with international know-how and profitability.

Export turnover touches Rs 1,350 cr

Hindustan Lever's export turnover, including that of its subsidiaries, went up to Rs 1,350 crore in the first nine months of 1998, a 60.7 per cent jump over Rs 840 crore in the corresponding period last year. The company's tea export business has grown by over 80 per cent during the period, the company said, while adding that this has been achieved with a thrust on value-added products and investment in high-technology sealed tea bag manufacturing facilities.

Exports of home and personal care products have posted a 35 per cent growth. The company has created new markets for these products in the Commonwealth of Independent States countries. On the export front, HLL's export director V Balaraman said, "HLL's integrated exports strategy on opening up new markets, value addition and branding is helping the company to be resilient against turbulent tradingconditions."