Leading FMGC major, Hindustan Unilever Ltd (HUL) has said that its net profit has risen 15.59 per cent to Rs 871.36 crore during the third quarter of the financial year.

The net profit increased in the quarter from October to December, 2012 mainly due to increased sales reported across various business verticals. Even as the company reported an increase in profits, the investors seemed disappointed with the third quarter figures and the shares of the company fell in a positive market.

HUL stock fell more than 7 per cent during the early trade today as investors noted that the company reported a growth of only 5 per cent in volume for domestic consumer business, which is its lowest level in three years. The shares opened weaker and further fell 7.12 per cent to Rs 447.25 on the Bombay Stock Exchange (BSE). On the other hand, the shares were trading 6.87 per cent lower at Rs 447.85 at the National Stock Exchange (NSE).

Meanwhile, the board of the company approved a proposal to increase the royalty payment to 3.15 per cent to its parent company, Unilever Plc.