Hindustan Unilever (HUL)s performance for 3QFY2014 was slightly below consensus expectations. For the quarter, the companys top-line grew by 2.7% yoy to Rs7,981cr while the reported PAT grew ~6% yoy to Rs1,026cr. Key highlights: For 3QFY2016, HULs top-line rose by 2.7% yoy to Rs7,981cr. The soaps and detergents division posted a flat yoy growth due to weak macros. However, in the soaps segment, we saw some growth in Dove, Pears and Lifebuoy as well as double-digit growth in the liquids portfolio. The detergents segments saw double-digit growth in Surf and Rin. The personal products division posted a modest growth of 5.6% yoy. The reported growth of this segment was impacted by delayed winter and owing to one-time realignment of channel spends. In the beverages segment, the company reported a growth of 7% yoy primarily led by volumes, which were driven by activations and market development initiatives by the company. On the operating profit front, the company reported a de-growth of 0.5% yoy due to lower sales growth. Further, the operating profit margin fell by 52bp yoy to 16.5% due to increase in advertisement and other expenses. During the quarter, the company incurred Rs55cr under the exceptional items head, which factored...