Price cuts in select product categories are expected to impact the growth of Fast-Moving Consumer Goods (FMCG) maker Hindustan Unilever Limited (HUL) in Q1FY25.
The Mumbai-based company will likely see an uptick in value growth in the home care category.
The company is expected to post a profit after tax at Rs.2,652 crore with a growth of 2.5 per cent year-on-year and 6.9 per cent quarter-on-quarter, according to Prabhudas Lilladher.
Further, according to analysts, the company’s growth during the quarter could also be impacted by fluctuations in raw material prices.
“Revenue is expected to remain flat (similar to Q4) on account of subdued performance across categories, mainly impacted by price cuts in soaps,” mentions Axis Securities.
“We expect Hindustan Unilever Limited(HUL) to post underlying volume growth of 2.5 per cent year-on-year, with negative pricing would lead to a subdued 0.8 per cent year-on-year revenue growth. We expect gross margin to improve sequentially due to stabilization in commodity inflation,” stated YES SECURITIES.
The company reported a 1.6 per cent dip in its profit to Rs.2,558 crore during the March quarter.