HUL Q4 PAT jumps 41% YoY to Rs 2,143 crore, beats Street estimates

The company board also recommended a final dividend of Rs 17 per share of face value of Re 1 each, for the financial year ended 31st March 2021

Hindustan Unilever (HUL) on Thursday reported standalone net profit at Rs 2,143 crore for the March quarter of the financial year 2020-21 (Q4FY21), up 41.07 per cent year-on-year (YoY). The company had reported a profit of Rs 1,519 crore in the same period last year.

On a sequential basis, the figure jumped 11.55 per cent from Rs 1,921 crore posted in the December quarter.

The revenue during the quarter under review jumped 34.63 per cent YoY to Rs 12,132 crore in comparison with Rs 9,011 crore in the same period last year. It climbed 2.27 per cent quarter-on-quarter (QoQ).

The March quarter results beat analysts estimates on the profit front as brokerages had estimated the figure to grow between 11-32 per cent YoY. While they had projected the figure to be flat on a QoQ basis. Even the March quarter revenue beat analysts estimate marginally. READ HERE

Earnings before interest, tax, depreciation and amortisation (Ebitda) for the March quarter stood at Rs 2,957 crore as against Rs 2,065 crore posted in the corresponding quarter a year ago. Ebitda margins, meanwhile, grew 150 bps YoY, the company said.

"Growth in the quarter was competitive and profitable with reported turnover growth of 34 per cent and profit after tax growth of 41 per cent. Domestic consumer growth was at 21 per cent with underlying volume growth of 16 per cent. Health, hygiene and nutrition forming c.80 per cent of business grew in double-digits for the third consecutive quarter, while discretionary and out-of-home categories improved sequentially," the company said in an earnings release.

The company board also recommended a final dividend of Rs 17 per share of the face value of Re 1 each, for the financial year ended 31st March 2021.

Commenting on the March quarter performance, Sanjiv Mehta, Chairman and Managing Director of HUL said, “Our in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY21, our business ecosystem has withstood the disruption and demonstrated agility and resilience across the value chain. We have delivered on our multi-stakeholder business model. Our purpose-led brands and capabilities were further strengthened during the year and this positions us well to serve our consumers during this turbulent period. Our focus firmly remains behind delivering volume led competitive growth."

For the full financial year 2021 (FY21), HUL's turnover grew 18 per cent YoY to Rs 45,311 crore with domestic growth ((excluding the impact of merger of GSK CH and acquisition of ‘VWash') at 6 per cent. The net profit for FY21 rose 18 per cent YoY at Rs 7,954 crore.

Segment-wise performance

The home care growth for Q4FY21 stood at 15 per cent YoY and was enabled by a strong recovery in fabric wash. Household care continued its strong performance delivering double-digit growth. Liquids and fabric sensations continue to outperform benefitting from robust market development initiatives, the company said.

The beauty and personal care segment grew 20 per cent YoY with skin cleansing, hair care and oral care delivering high double-digit growths. A calibrated approach towards price increase has helped protect our business model even as vegetable oils continue to inflate at record levels, HUL said.

Foods and refreshment grew at 36 per cent YoY. "Nutrition volumes grew in double digits and we launched Rs 2 sachets in Horlicks and Boost. Our goal remains to drive penetration in this category," it further added. 

Following the presentation of March quarter numbers, the stock was trading 0.60 per cent higher at Rs 2421.45 on the BSE at around 1.50 pm.