With the decrease in commodity inflation and green shoots in the rural market, Fast-Moving Consumer Goods (FMCG) major Hindustan Unilever Limited (HUL) is likely to register a volume growth of 5 per cent.

According to analysts, the rural market moved ahead of urban areas during the quarter owing to price cuts and stable pricing across categories. 

The company’s profit after tax is expected to grow by 16.8 per cent year-on-year. 

Also read: HUL now has 19 brands with turnover exceeding ₹1,000 crore

“We expect 9 per cent revenue growth with 4 per cent realisation growth and volume growth of 5 per cent for HUL. Gross margins to improve year-on-year/quarter-on-quarter due to lowering commodity inflation. The Gross/EBITDA margins to improve by 265/95bps YoY,” mentioned Prabhudas Lilladher.

The company’s result on Thursday will be the first for MD and CEO Rohit Jawa after the change in guards. Jawa replaced Sanjiv Mehta who retired after being at the helm for 10 years. 

Analysts are positive about the company with a sustainable competitive advantage and business moats during the quarter. 

Also read: HUL to focus on embracing changes to stay ‘future-fit’

“HUL’s laundry portfolio has premiumised over the years, with a larger contribution from liquids and other offerings under the brand, Surf Excel. The mass and premium categories are growing. HUL has seen the highest price hikes in the last year,” mentioned BNP Paribas. 

Earlier, the company had reported a net profit of ₹2,552 crore in the March quarter, up 9.7 per cent on the year, while revenue rose 10.6 per cent to ₹14,893 crore on an underlying volume growth of 4 per cent on the year.

The BPC segment witnessed the highest margin at 26 per cent, while the food and refreshment segment had seen a revenue of 3 per cent. 

Related Topics
comment COMMENT NOW