HUL Q1 Results Preview: Revenue Growth Likely To Remain Flat, Shares Gain 4.41% In 1-Week

Large cap FMCG major Hindustan Unilever Ltd (HUL) is scheduled to announce its Q1 earnings today. According to estimates by leading brokerages, the company is likely to declare its June quarter net profit in the range of Rs 2480 crore to Rs 2560 crore. Meanwhile, revenue from operations is also expected to remain flat and remain in the range of Rs 14,925 crore to Rs 15,450 crore. HUL's Q1 EBITDA may surge between 2% to 3% on year to Rs 3620 crore.
According to Kotak Equities, "We expect 1Q to be similar to 4QFY24. We build flat YoY revenue growth, led by 2% YoY growth in underlying volume growth (UVG). We expect HC (healthcare) growth at 2% YoY, BPC (beauty & personal care) revenues decline by 2.5% YoY owing to price cuts taken towards end-4Q and 4% F&R growth as a soft base in tea and a strong summer-led boost in ice creams, is partly offset by anniversarisation of price hikes in HFD (health food drinks)."

Meanwhile, Prabhudas Lilladher, "HUL is expected to deliver volume growth of 3% with 2% YoY revenue growth while negative realisation growth continues for a second consecutive quarter. We expect strong performance in laundry while OOH consumption and hot beverages might be weak."

According to brokerages, the entire demand for HUL's products is seen muted in Q1FY25. Underlying volume growth expected to remain in single-digits, according to brokerages. However, volumes in 75 percent of HUL's business are growing. The FMCG major is expected to enhance its volume growth in FY25 and FY26, said Motilal Oswal.

On the other hand, leading brokerage firm Axis Securities, "Revenue is expected to remain flat (similar to Q4) on account of subdued performance across categories, mainly impacted by price cuts in soaps. EBITDA margins are likely to remain flat owing to higher ad-spends, higher royalty payment, and GSK consignment sales termination."
Hindustan Unilever Share Performance: Hindustan Unilever shares offered 12% return in last 1-month, gained 22% in last 3-months, and gained 5% in last 1-year. In last 2-years, HUL shares surged over 3% and rose 63% in last 5-years. In last 10-years, Hindustan Unilever Ltd shares zoomed 332%. The 52-week high price of HUL shares on BSE is Rs 2750.00 per share (as on 18/07/2024) and 52-week low price is Rs 2170.25 per share (as on 16/04/2024), respectively.

HUL Dividend In 2024: As per the regulatory filing of HUL dated April 24, 2024, "recommended a final dividend of Rs. 24/- for the financial year ended 31st March, 2024 on Equity Shares of Re. 1/- each. The Company had earlier paid an interim dividend of Rs. 18/- per share on 16th November, 2023. The total dividend for the said period amounts to Rs. 42/- per Equity Share of face value of Re. 1/- each."

Shareholding Pattern: FII/FPI decreased holdings from 12.67% to 11.87% in Jun 2024 quarter. Number of FII/FPI investors increased from 1925 to 1951 in June 2024 quarter. Mutual Funds have increased holdings from 5.01% to 5.58% in June 2024 quarter. Number of MF schemes increased from 333 to 362 in June 2024 quarter. Institutional Investors have increased holdings from 25.95% to 26.04% in June 2024 quarter. Lici Market Plus Balanced Fund has 5.16% stake in HUL with 121,161,787 shares of the company.

HUL Q4 Results: The FMCG giant announced a 6% fall in its standalone net profit to Rs 2406 crore for the 4th quarter ended March 31, 2024 as against Rs 2552 crore reported in the year ago period. HUL recorded a marginal surge in its revenue from operations to Rs 14,693 crore for the Q4 ended March 31 as against Rs 14,638 crore declared in the corresponding period of last year. Revenue in beauty and personal care slipped 2.7%. EBITDA for the Q4 fell 1% year-on-year to (YoY) to Rs 3,435 crore as against Rs 3,471 crore in the corresponding quarter of last year. And, EBITDA margins contracted 30 basis points to 23.4% for Q4 ended March 31, 2024. The Company's turnover for the financial year ended 31st March, 2024 was Rs. 59,579 crores as against turnover of Rs. 58,154 crores for the financial year ended 31st March, 2023. The Profit before tax was Rs. 13,675 crores as against Rs. 13,079 crores for the corresponding year.

Hindustan Unilever About: Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company with a 90-year heritage in the country. It has a wide and resilient portfolio of 50+ brands, spanning 16 FMCG categories, which are a part of everyday life of millions of consumers across India. It manufactures more than 65 billion units annually, that are made available to our consumers through nine million retail outlets and many digital commerce platforms, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal, Axis Securities, Kotak Equities, and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.