Covid-19 impact: HUL Q4 volumes decline 7%, more than in demonetisation

The Street had factored in a drop of 2-4 per cent in Q4 volume growth on account of the Covid-19 outbreak and subsequent lockdown but 7% decline was a surprise for many.

Hindustan Unilever (HUL), the country’s largest consumer goods company, on Thursday reported a 7 per cent decline in volumes for the quarter ended March 31, 2020 (Q4FY20), faring even worse than the demonetisation quarter (October-December 2016), when the fall was 4 per cent.
 

The Street had factored in a drop of 2-4 per cent in Q4 volume growth on account of the Covid-19 outbreak and subsequent lockdown. “But a 7 per cent decline was a surprise,” said Kaustubh Pawaskar, associate vice-president (research) at brokerage Sharekhan.

“The supply disruption caused by the lockdown at the fag end of the quarter