HUL hits one-month low post Q4 results

The company's volume growth in Q4FY2014 moderated to 3% from 4% in Q3FY2014 and 5% in Q2FY2014.

Hindustan Unilever (HUL) has lost nearly 3% to Rs 565, its lowest level since March on the NSE, after reporting 1% sequential decline in the volume growth for the fourth quarter ended March 31, 2014 (Q4FY14).

The company’s volume growth in Q4FY2014 moderated to 3% from 4% in Q3FY2014 due to sales pressure in some key categories such as soaps, detergents, skincare products and oral care. HUL had reported volume growth of 5% in Q2FY2014.

Meanwhile, the company had reported 11% year-on-year growth in standalone net profit of Rs 872 crore for the quarter ended March, owing to one-time gains of Rs 66 crore and low advertising and sales promotion expenditure. Net sales rose 9% to Rs 6,936 crore from Rs 6,367 crore in the year-ago quarter.

Sharekhan has maintained 'Reduce' rating on the stock with an unchanged price target of Rs 520.

"We do not expect the volume growth to improve significantly in the future because the consumer sentiment remains subdued and the monsoon rainfall is expected to be below normal, which would affect the rural demand for FMCG products in the coming quarters," the Sharekhan analyst said in a report.

The stock has declined 6% from Monday's intra-day high of Rs 599. Today, the stock opened at Rs 581 and touched a high of Rs 582 on the NSE. A combined 810,000 shares have changed hands on the counter so far on the NSE and BSE.