New Delhi, April 30 -- Hindustan Unilever Ltd said on Thursday it is relying on cost cuts and price hikes to counter commodity and currency volatility stemming from the Middle East war, after reporting an 18% jump in quarterly profit.

Rising raw material costs, exacerbated late in the March quarter by a conflict-driven spike in crude prices, are squeezing margins for consumer goods makers, just as demand was recovering.

"Heightened geopolitical tensions have led to commodity and currency volatility," Priya Nair, CEO and managing director, said, adding Hindustan Unilever is balancing price increases, cost savings and advertising spending to offset "short-term impacts."

Shares reversed course to trade nearly 3% lower after the results, m...