HUL's Q4 numbers a warning signal for those investing in the FMCG sector

With a 7% fall in volumes, topline declined by 9% and pre-tax profit by 11%; analysts see more pressure in coming quarters

India Inc, including the pricey fast-moving consumer goods (FMCG) players were expected to bear the brunt of the Covid-led disruption.

However, Hindustan Unilever’s (HUL’s) worse-than-expected March quarter (Q4) numbers indicate that investors will have to lower expectations further, with further pressure likely ahead.

Domestic volumes shrunk by 7 per cent year-on-year (YoY) — among the worst-ever performances by the FMCG major — lower than the Street’s expectations of a 4 per cent decline. This took a toll on HUL’s overall Q4 numbers.

Top line fell 9.4 per cent YoY to Rs 8,885 crore, suggesting that average realisation contracted by over