HUL Reports Marginal Decline In Revenue, Net Profit Flat

Large Cap FMCG company Hindustan Unilever Ltd (HUL) today declared a marginal surge of 0.6% year-on-year (YoY) in net profit to Rs 2,519 crore from Rs 2505 crore in the corresponding quarter of last year. Despite reporting the disappointing earnings for the quarter ended December, Hindustan Unilever Ltd shares on BSE surged 0.66% to close at 2564.75 apiece. Sequentially, bottomline fell 7.3% and topline declined 0.6%. The company's underlying sales growth remained flat for the quarter under review as volume growth remained at 2% from the year ago period.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) surged slightly by 0.1% YoY to Rs 3,540 crore as operating margins grew merely 10 basis points on year to 23.7%.

Its revenue from operations witnessed marginal decline of 0.3% YoY to Rs 15,188 crore. The company announced a marginal dip of 0.38% in total revenue to Rs 14,928 crore from Rs 14,986 crore in the year ago period, as per its BSE filing.

"Exceptional items in DQ 23 include restructuring expenses of Rs. 30 crores (DQ 22: Rs. 57 crores) and acquisition and disposal related cost Nil (DQ 22: Rs. 45 crores)," as per the BSE filing.

"Looking forward we expect gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery." said Rohit Jawa, CEO.

HUL Shares Performance & Return: HUL shares witnessed a dip of 2.12% in last 2-weeks and 3.42% year-to-date. In last 1-year too, Hindustan Unilever fell by 3.23% and offered gain of 10.99%. Hindustan Unilever shares soared 47% in last 5-years. The 52-week high price of Hindustan Unilever shares on BSE is Rs 2,768.50 per share and 52-week low price is Rs 2393.00 per share, respectively. The company has a market capitalisation of Rs 6,02,611.42 crore.

HUL Issues Update On Acquisition: As per the company's BSE filing dated January 18, 2024, "This is further to our letter dated 1st December, 2023, intimating about the approval by the Board of Directors for the proposal to enter into an agreement for the purpose of acquisition of renewable power by acquiring up to 27.73% stake in the equity share capital of Transition Sustainable Energy Services One Private Limited (SPV), a Private Limited Company incorporated under the Companies Act, 2013, subject to signing of Transaction Documents."

The Company has entered into Transaction Documents for acquisition of 27.73% stake in the equity share capital of the SPV. The said Transaction is subject to the fulfilment of various terms and conditions as specified in the Transaction Documents, added the BSE filing of HUL.

HUL Dividend In Q2: According to the BSE filing of the company dated today, "declared an interim dividend of Rs. 18/- per equity share of face value of Re. 1/- each for the financial year ending 31st March, 2024. As intimated vide our letter dated 5th October, 2023, the record date for the purpose of determining the entitlement of the shareholders for the interim dividend has been fixed as Thursday, 2nd November, 2023, and dividend will be paid to the shareholders on or after Thursday, 16th November, 2023."

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.