HUL Q4: FMCG Giant Declares 6% Fall In Net To Rs 2406 Cr, Rs 24/Share Dividend Announced

Large cap FMCG giant Hindustan Unilever Ltd declared a 6% decline in its standalone net profit to Rs 2406 crore for the 4th quarter ended March 31, 2024 as compared to Rs 2552 crore reported in the year ago period. The FMCG giant witnessed marginal rise in its revenue from operations to Rs 14,693 crore for the Q4 ended March 31 as against Rs 14,638 crore reported in the corresponding period of last year. Revenue in beauty and personal care declined 2.7%.

HUL also recommended dividend of Rs 24/share. Current market price of HUL share is Rs 2259.15 per share with intraday fall of 0.16%. Hindustan Unilever share gained 1.72% in last 1-week.

The company said it delivered a robust performance for the quarter under consideration with an underlying sales volume growth registered at 2%.
EBITDA for the Q4 declined 1% year-on-year to (YoY) to Rs 3,435 crore as compared to Rs 3,471 crore in the similar quarter of last year. And, EBITDA margins contracted 30 basis points to 23.4% for Q4 ended March 31, 2024.

Earlier, brokerage firm Axis Securities anticipated a fall of 2.6% in the net profit. On the other hand, Anand Rathi and Sharekhan believed HUL might witness marginal surge in PAT for the March quarter of FY 2024. Motilal Oswal expects HUL may declare a profit of Rs 2,507.6 crore, EBITDA at Rs 3,542 crore and sales at Rs 15,363.9 crore for the March quarter. HUL wide product basket and presence across price segments should help the company achieve a steady growth recovery. "We will monitor the execution in these segments under the new CEO. The valuation at 45x FY26E earnings per share (EPS) is reasonable given its last five-year average price-to-earnings (P/E) of 65x on one year forward," added Motilal Oswal.

HUL Declares Dividend: 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."

HUL Q4: As per the company's exchange filing dated April 24, 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. Depreciation / amortization for the year was Rs. 1,097 crores as against Rs. 1,030 crores in the corresponding year. Exceptional Items for the period amounted to a loss of Rs. 89 crores as against loss of Rs. 62 crores in the corresponding year, added the BSE filing.

Provision for taxation (including deferred tax) is Rs. 3,561 crores (Last Year: Rs. 3,117 Crores). Profit after Tax and Net Profit increased to Rs. 10,114 crores (Last Year - Rs. 9,962 Crores).

Rohit Jawa, CEO and Managing Director, said: "In FY24 we delivered a resilient performance with 3% USG and crossed Rs 10,000 crores Net Profit mark. We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities. Looking forward, I am optimistic of consumer demand gradually improving due to a normal monsoon and better macro-economic indicators."

HUL Share Performance: The 52-week high price of HUL Share on BSE is Rs 2768.50 (as on 07/07/2023) and 52-week low price is Rs 2170.25 (as on 16/04/2024). The company has a market capitalisation of Rs 5,32,182.42 crore. Hindustan Unilever Ltd shares fell 4.73% in last 3-months, declined 9.42% in last 1-year, and gave return of 6% in last 2-year, and fell again by 1.96% in last 3-years, and soared 30% in last 5-years.

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, Nuvama, Kotak Institutional Equities, Elara Capital, Axis Securities, and Anand Rathi. 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.