Hindustan Lever Ltd has reported a flat growth in net profit at Rs 1,771.79 crore for the year ended December 31, 2003, compared to Rs 1,769.74 crore recorded in the previous year, even as it plans to enter the water business in the first six months of 2004.

The HLL board has proposed a final dividend of Rs 3 per share, making a total of Rs 5.50 per share for 2003, HLL director finance D Sundaram told newspersons on Tuesday.

Net sales in 2003 rose to Rs 10,138.35 crore from Rs 10,138.35 crore while exports declined to Rs 1,246.3 crore (Rs 1,221.15 crore in 2002), he said.

For the December quarter, the FMCG major has reported a marginal 2.9 per cent rise in net profit at Rs 494.72 crore (Rs 480.57 crore in Q4 of 2002) while net sales decreased to Rs 2,583.48 crore (Rs 2,634.50 crore), he added.

HLL group's net profit and net sales for 2003 stood at Rs 1,687.34 crore (Rs 1701.46 crore) and Rs 10,836.95 crore (Rs 10,628.61 crore), respectively.

HLL Chairman M S Banga said, "Our strategy of focusing on our 30 power brands has put us firmly on the path of sustainable growth. In home and personal care, power brand growth has doubled from 3.2 per cent to 6.5 per cent in 2003 while in foods, power brands have grown by 9 per cent after declining in 2002."

Sundaram said that profit before tax and profit after tax at Rs 646.1 crore and Rs 562.33 crore, respectively, in the December quarter, recorded decline mainly on account of interest payable on bonus debentures.