After a steady Q2, HUL's 'cautious optimism' stance raises demand concerns

Company posts 9% YoY increase in net profit, 11% growth in revenues

Ram Prasad Sahu
hindustan unilever, HUL, fmcg

The country’s largest fast-moving consumer goods (FMCG) company, Hindustan Unilever (HUL), posted a 9 per cent year-on-year (YoY) rise in net profit at Rs 2,187 crore for the July-September quarter (Q2 of FY22). This was marginally lower than the Rs 2,195 crore estimated by Bloomberg.
Despite a robust top line performance, the rise in costs weighed on the operating performance as well as the bottom line.Powered by a double-digit growth across two of its three segments, HUL reported a 11 per cent rise in revenues. While volume growth at 4 per cent was weaker than the 9 per cent in the June quarter, the company indicated that it was on account of a higher base for Q2. HUL said that 75 per cent of its business saw an increase in market share as well as penetration. The rest of the top line growth came from price hikes.
Despite the good performance, the stock shed over 4 per cent in trade. Street is worried on two counts. The firs

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First Published: Oct 19 2021 | 8:49 PM IST

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