By innovating in terms of product, promotions, and packaging, and keeping prices low, these local brands have grabbed a share of the pie from their larger counterparts
Thus far in calendar year 2023, the share price of ITC has appreciated by 48 per cent, while HUL's stock price has gained 1.3 per cent and the Sensex 8.8 per cent, respectively.
Margin gains going ahead is a key positive
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The S&P BSE Sensex crashed over 1,000 points to hit day's low of 66,534 levels, while Nifty50 crashed 279 points to day's low of 19,700 levels
Fast-moving consumer goods markets are recovering gradually although the operating environment remains "challenging," CEO Rohit Jawa said
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Total expenses were higher at Rs 12,167 crore as compared to Rs 11,531 crore in the same quarter a year ago, the company said
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Approximately 205 managers at HUL received an annual income surpassing Rs 1 crore, compared to 153 managers in the previous financial year
At the bourses, shares of HUL surged 25 per cent in March 2022-23 period, as against 0.7 per cent rise in the S&P BSE Sensex, during the same period
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The stock of largest fast moving consumer goods (FMCG) company traded close to its 52-week high level of Rs 2,741, which it had touched on December 9, 2022
FMCG major HUL's revenue from Lakme Lever Pvt Ltd, a wholly-owned subsidiary engaged in the salon business, increased 19.3 per cent to Rs 328 crore in FY23, led by a recovery in the business after the COVID-19 pandemic, as per the company's latest annual report. The subsidiary reported a Rs 275 crore revenue from the sale of products and services in FY22. "The company (Lakme Lever) delivered robust top line and bottom line growth led by a recovery in the salon business," the report said. With a focus on safety, quality of operations, expert treatments and prudent cost optimisation, the salon business continues to perform well in the beauty services category, it said. "Job work business continued to do well," said HUL. Lakme Lever has over 450 owned/managed and franchisee salons. In the last year's annual report, the number of saloons was 400. "The company has emerged stronger post the pandemic by strengthening safety, quality and expertise across all touch points in our customer
Leading FMCG maker HUL expects the operating environment to remain volatile with global slowdown risks and weather-related uncertainty although price increase will tail off. In its annual report for 2022-23, the company said it anticipated a recovery in market volume gradually as consumption habits readjust with a lag. In the near term, the operating environment is expected to remain volatile with global slowdown risks and weather-related uncertainty, said the report. It further said,While inflation has moderated, commodities remain elevated vis--vis longer-term averages. Looking forward, we expect that the price-volume growth will rebalance. In the March quarter earnings call, HUL said the rural slowdown is "bottoming out" and a gradual recovery in volume is expected. However, HUL also warned that the near-term operating environment is likely to remain volatile due to global slowdown risk and uncertainty related to weather phenomena like El Nino, and heat waves. On the medium to
Paranjpe said that HUL is well-placed to partner the India growth story and is committed to playing its role in creating a sustainable and equitable future
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