Business Standard

Hindustan Unilever slips 3%; hits 2-month low post December quarter results

The company said weak rural consumer sentiment and delayed winter were behind its underwhelming performance.

Hindustan Unilever

SI Reporter Mumbai

Listen to This Article

Shares of Hindustan Unilever (HUL) hit a two-month low at Rs 2,485, falling 3 per cent on the BSE in Saturday’s intra-day trade after the company reported disappointing December quarter (Q3FY24) earnings with its consolidated net profit up marginally 1.4 per cent at Rs 2,509 crore over the previous year quarter.

India’s largest fast-moving consumer goods (FMCG) company’s revenue was down marginally by 0.3 per cent year-on-year (YoY) to Rs 15,294 crore, while volume growth was only 2 per cent YoY. EBITDA (earnings before interest, taxes, depreciation, and amortization) margins improved marginally 10 bps to 23.7 per cent from 23.6 per cent in Q3FY23.

The company said weak rural consumer sentiment and delayed winter were behind its underwhelming performance.

The stock price of HUL is trading at its lowest level since November 17, 2023. It had hit a 52-week low of Rs 2,393 on March 15, 2023.

On operating environment, HUL expects gradual demand recovery to continue. The rural income growth and winter crop yields would be the key factors in determining the pace of recovery. With the commodity prices remaining benign, competitive intensity likely to stay high, the company said.

On outlook, HUL said it’s focused on driving competitive volume growth. The price growth to be marginally negative if commodity prices remain where they are, the company said, adding that it was stepping up investments behind its brands and long-term strategic priorities whilst maintaining EBITDA margins in a healthy range.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 20 2024 | 10:11 AM IST

Explore News