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HUL Q4 Result: Net profit jumps 10% to Rs 2,552 crore, revenue rises 11%

Hindustan Unilever Limited (HUL) reported on April 27 a standalone net profit of Rs 2,552 crore for the March quarter of FY23, a 9.66 percent increase from Rs 2,327 crore in the same quarter of the prior fiscal year.

The FMCG giant’s quarterly revenue was Rs 15,053 crore, up 10.81 percent from Rs 13,584 crore in the same period last year, according to a regulatory filing.

The profit was essentially in accordance with expectations, but the revenue fell short. According to a survey of brokerages, HUL’s Q4 revenue was estimated to be Rs 15,277 crore and its net income to be Rs 2,587 crore. Price increases lead to 9 percent revenue growth and 5 percent volume growth, according to estimates. Also in the previous quarter, volume increased by 5 percent.

The fourth quarter’s underlying volume growth was 4 percent, below expectations.

The company’s Board of Directors has also proposed a final dividend of Rs 22 for the fiscal year ending on March 31, 2023. On November 17, 2022, the company paid an interim dividend of Rs 17 per share.

EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter increased by 7 percent to Rs 3,471 crore. The EBITDA margin decreased 90 basis points year over year to 23.7%. The EBITDA margin was 23.3%, which was lower than the expected 23.9 percent.

HUL reported that the home care division delivered another respectable quarter with 19% revenue growth. Both fabric care and domestic care saw double-digit growth. The beauty and personal care industry grew by 10%, with growth across all categories.

Food, coffee, and health food drinks (HFD) were the three most popular foods and beverages, increasing by 3%.

As a result of a decline in the price-to-cost differential, gross margin increased by 120 basis points quarter-over-quarter.

“We continue to make steady progress in future-proofing our business through portfolio transformation and building distinctive capabilities,” said Sanjiv Mehta, CEO and Managing Director. “Looking forward, the near-term operating environment is likely to remain volatile. With inflation easing due to lapping of high base and sequential softening in a few commodities, price and volume growths will rebalance.”

“Market volumes will recover gradually as consumption habits readjust. We remain focused on managing our business with agility and growing our consumer franchise whilst maintaining margins in a healthy range.”

As of 12:20 pm BSE time, the share price of HUL fell 1.56 percent to Rs 2465.60 following the release of earnings.

Aryan Jakhar

Aryan Jakhar works as an Editor-in-Chief at The Shining Media. Also, he is an editor at YouthPolitician (digital media situated in Taiwan). He writes his opinions on social issues at YouthKiAwaaz and also on his blogger website.



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