Hindustan Unilever Ltd (HUL) announced on Monday that it has complied with the decision made by the Income Tax assessing officer. The FMCG giant has made a payment of ₹192.55 crore, which amounts to 20% of the total outstanding demand of ₹962.75 crore.
This payment follows a letter dated October 14, 2024, in which HUL stated that it had appealed the assessment order and the associated notice of demand to the Commissioner of Income Tax in Mumbai.
The Company has made a payment of ₹192.55 crore on November 28, 2024, in compliance with the aforementioned direction. The payment was made following the receipt of the said amount under an indemnification claim as per the relevant Sale and Purchase Agreement and therefore does not have any financial implications at this stage,” the company mentioned in its exchange filings.
Nature of the Claim
The claim, which totals ₹329.33 crore including interest, originated from the failure to deduct TDS during the transfer of ₹3,045 crore (EUR 375.6 million) related to the acquisition of the Horlicks brand in India from GSK. This transaction also integrated other GSKCH products into HUL’s portfolio, including Boost, Maltova, and Viva.
HUL reported that the Assessing Officer issued an order on November 6, 2024, instructing the company to pay 20% of the total outstanding demand by November 30, 2024. Recovery proceedings for the remaining amount have been halted.
In light of the submissions made by the Company, the Assessing Officer, via its Order dated November 6, 2024, directed the Company to remit 20% of the total outstanding demand of ₹962.75 crore on or before November 30, 2024, and has put the recovery proceedings for the remaining amount on hold,” the company stated in its press filings.
HUL Q2 FY25 Financial Results
Hindustan Unilever Ltd (HUL) reported a 2.33% decrease in total net profit, amounting to ₹2,595 crore for the second quarter ending September 30, 2024, down from ₹2,657 crore during the same period last year.
Conversely, total sales revenue improved by 2.36% to ₹15,703 crore in the September quarter, compared to ₹15,340 crore in the prior year.
HUL also noted an underlying sales growth of 2% and an underlying volume growth of 3%. Total expenses rose to ₹12,581 crore in the September quarter, an increase of 3.03% year-on-year. The company’s total income, which includes other income, grew by 2.14% to ₹16,145 crore in the September quarter of FY25.