HUL Q4 numbers not too bad, but investors may need to moderate expectations

The January-March quarter did not turn out to be as disappointing as was anticipated, but near-term challenges on the volume front remain a concern for Hindustan Unilever

After a weak show by some of India’s important fast-moving consumer goods (FMCG) companies like Britannia and Dabur India, expectations from Hindustan Unilever (HUL) were also somewhat muted. Accordingly, the HUL stock on Friday fell by over two per cent before the result was announced after market hours.

However, the numbers were not too bad, except that for the net profit. At Rs 9,809 crore, the company’s revenue in the March quarter (Q4) grew by nine per cent year-on-year; 50 basis points lower than the Bloomberg consensus estimate of Rs 9,858 crore. Net profit (before exceptional items), at Rs 1,590