Preview of HUL Q4: PAT is expected to decline 6% YoY, while margins remain unchanged at 23% due to higher ad spending
On April 24, 2024, FMCG giant Hindustan Unilever (HUL) is scheduled to release its March quarter results. The firm is expected to record a quiet quarter, with sales expected to drop 1% year over year to Rs 15,127 crore, according to Zee Business Research Desk.
It is anticipated that revenue for the quarter ending in March would be Rs 15,127 crore, which represents a 1% decrease from the Rs 15,215 crore recorded in the preceding fiscal year. Additionally, it is anticipated that EBITDA, a gauge of operational profitability, will decline by 3% to Rs 3479 crore from the previous Rs 3574 crore. Due to rising advertising expenses, the company’s margins will also be harmed, coming in at 23 percent as opposed to 23.5 percent the year before.
As a result, according to Research Desk, the company’s profit after tax (PAT) would decrease by 6% to Rs 2454 crore from Rs 2601 crore.
According to the desk, there will be an effect from a 2% price reduction and a 40 bps royalty hike. Additionally, the company’s volume is expected to expand by 3% in the home markets.
Furthermore, the suspension of the HUL-GSK agreement will be a blow to the company’s OTC and oral care division.
Moreover, the corporation is likely to have flat growth in the beauty and personal care (BPC) sector, despite the homecare segment showing respectable development.
Important metrics to track
The demand prognosis for both rural and urban markets, the level of competition, and the movements in raw material prices will all be closely watched by investors and the markets.
HUL Q3 findings
HUL had a consolidated total revenue of Rs 15,781 crore and an operating profit of Rs 3666 crore for the December quarter. The company’s net profit for the quarter that ended in December was Rs 2509 crore.
HUL’s stock value
The company’s shares saw increases of more than 1% on the BSE, closing at Rs 2268.45, up 25.9 per share, ahead of its results tomorrow.
