HUL Q4: Major FMCG Company Reports 6% Drop in Net Worth to Rs 2406 Cr, Announces Rs 24/Share Dividend

Hindustan Unilever Ltd., a large FMCG company, reported a 6% decrease in its standalone net profit to Rs 2406 crore for the fourth quarter that ended on March 31, 2024, from Rs 2552 crore recorded in the same period the previous year. The FMCG behemoth saw a little increase in operating revenue, which came to Rs 14,693 crore for the fourth quarter that concluded on March 31 as opposed to Rs 14,638 crore recorded during the same time the previous year. Personal care and cosmetics revenue fell 2.7%.

Moreover, HUL suggested a dividend of Rs 24 per share. HUL’s share price is now trading at Rs 2259.15, down 0.16% on a daily basis. In the previous week, Hindustan Unilever’s share increased by 1.72%.

According to the firm, it had a strong showing for the quarter in question, with underlying sales volume increase of 2%.
EBITDA for the fourth quarter of this year was Rs 3,435 crore, down 1% YoY from the same period the previous year when it was Rs 3,471 crore. The Q4 ending March 31, 2024 saw a 30 basis point decline in EBITDA margins to 23.4%.

Axis Securities, a brokerage business, had previously projected a 2.6% decline in net profit. Anand Rathi and Sharekhan, however, thought HUL would see a little increase in PAT for the March quarter of FY 2024. Motilal Oswal anticipates that HUL would report revenues of Rs 15,363.9 crore, an EBITDA of Rs 3,542 crore, and a profit of Rs 2,507.6 crore for the March quarter. HUL’s broad range of products and presence at various price points could aid in the company’s rebound to stable development. “Under the new CEO, we will keep an eye on how these sectors are being executed. Given its past five-year average price-to-earnings (P/E) of 65x on a one-year forward basis, the value of 45x FY26E earnings per share (EPS) is appropriate, according to Motilal Oswal.

HUL Declares Dividend: “Recommended a final dividend of Rs. 24/- for the financial year ended 31st March, 2024 on Equity Shares of Re. 1/- each,” according to HUL’s April 24, 2024 regulatory filing. On November 16, 2023, the company had previously distributed an interim dividend of Rs. 18/-per share. For the specified period, the total dividend is Rs. 42/-per equity share with a face value of Re. 1/-each.”

HUL Q4: According to the company’s April 24 exchange filing, the company’s turnover for the fiscal year that concluded on March 31, 2024, was Rs. 59,579 crores, compared to Rs. 58,154 crores for the fiscal year that ended on March 31, 2023.

Compared to the previous year’s Rs. 13,079 crores, the profit before tax was Rs. 13,675 crores. During the year, depreciation and amortization was Rs. 1,097 crores, compared to Rs. 1,030 crores in the year before. According to the BSE filing, exceptional items resulted in a loss of Rs. 89 crores for the period, compared to a loss of Rs. 62 crores for the same year.

There is a tax provision of Rs. 3,561 crores (including deferred tax) (Rs. 3,117 crores in the previous year). Net profit and profit after taxes rose to Rs. 10,114 crores (from Rs. 9,962 crores in the previous year).

The CEO and Managing Director, Rohit Jawa, stated: “We achieved the Rs 10,000 crores Net Profit milestone in FY24 and produced a strong performance with 3% USG. Our goal is still to achieve operational excellence, and we’ve been increasing our investments in long-term skills and brands while also regaining our gross margins. Going forward, I anticipate that improved macroeconomic data and a regular monsoon would lead to a progressive improvement in consumer demand.”

HUL Share Performance: As of 07/07/2023, the price of HUL Share on the BSE was Rs 2768.50, and as of 16/04/2024, it was Rs 2170.25. The market capitalization of the firm is Rs 5,32,182.42 crore. After falling 4.73% over the previous three months, 9.42% over the previous year, and yielding a 6% return over the previous two, Hindustan Unilever Ltd.’s shares plummeted by 1.96% over the previous three years before rising 30% over the previous five.

Hindustan Unilever About: With a 90-year history in India, Hindustan Unilever Limited is the biggest Fast-Moving Consumer Goods (FMCG) company in the nation. Its portfolio of more than 50 brands, which cover 16 FMCG categories and are a part of millions of Indian customers’ daily lives, is robust and diverse. According to its official website, it produces over 65 billion items a year, which are distributed to customers via nine million retail locations and other internet commerce platforms.