Hindustan Unilever Ltd (HUL) on Wednesday missed estimates when it reported a 4 per cent drop in standalone net profits for the quarter ended September 30 amid moderation in urban demand and higher expenses.

The FMCG giant reported a net profit of ₹2,612 crore against ₹2,717 crore in the corresponding quarter of the previous year.

The board of directors of HUL has decided to spin off its ice cream business comprising brands such as Kwality Wall’s, Cornetto and Magnum.

Last month, its board had decided to constitute a committee of independent directors to evaluate in detail the prospects of its ice cream business and to make recommendations to the board.

The committee will have to choose between two options: either sell it or demerge itand then list it as a separate entity. The board will take a final decision by the end of December.

At its board meeting on Wednesday, the directors also declared an interim dividend of ₹19 per share.

HUL added that as the business operations were well funded and the company’s financial model continued to be strong, the board of directors has declared a special dividend of ₹10 per share, resulting in a total dividend payout of ₹6,814 crore.

Analysts had expected HUL to report profits of around ₹2,688 crore, according to data compiled by LSEG.

During the quarter, while its revenues grew to ₹15,319 crore from ₹15,027 crore in the year-ago period, expenses increased to ₹12,265 crore from ₹11,923 crore.