HUL Q3 results: Due to weak demand trends and the lack of a discernible increase in festive demand, analysts predicted that profit and revenue growth would be zero and that revenue could actually decline annually.
Hindustan Unilever Ltd (HUL) is scheduled to release a mediocre set of quarterly earnings later today. Profit growth is anticipated to be zero, while revenue may shrink on a yearly basis, experts said, citing weak demand trends and no significant increase in festive demand. Kotak Institutional Equities expects Q3 profit to dip 0.2 percent YoY to Rs 2,576 crore on a 0.1 percent increase in sales to Rs 15,239 crore. HUL’s pricing reductions, which Kotak predicts would be 2% YoY, are expected to have an impact on top-line growth.
“We anticipate a slowdown in the growth of the Home Care segment to 0.5% YoY (compared to 3.3% YoY in Q2) due to price reductions in the laundry portfolio. Additionally, we expect a moderation in Beauty and Personal Care (BPC) to 0.8% YoY (versus 1.8% YoY on an adjusted basis in Q2) due to price cuts in soaps. The ongoing weakness in Foods and Refreshments (F&R) growth is anticipated to continue, resulting in a 0.8% YoY growth (versus a 3% decline in Q2). We attribute this to high inflation affecting demand in coffee and HFDs, along with consumer downtrading to loose tea,” as stated by Kotak.
HUL Q3 results: Profit, sales, and volume growth will be flattish on price reduction, with no increase in demand.
HUL may experience a 1% increase in volume, according to Prabhudas Lilladher, while revenue and realisation growth are expected to decline by 2% and 3%, respectively. Gross margin is reported as being 52.5%, while EBITDA margin is reported as being 24%. It is anticipated that adjusted PAT will be flat at Rs 2,579 crore. The Q3 figures are affected by GSK’s November 1st termination of their marketing partnership, the statement stated.
YES Securities reports a 1.7% increase in standalone profit to Rs 2,624.70 crore. Sales are expected to increase by 2% to Rs 15,531 crore. Against a four-year CAGR of three percent, this brokerage observes volume increase of 2.5 percent. According to the statement, this combined with slightly negative pricing could result in a muted 2% YoY sales rise.
We expect higher priced inventory to impair QoQ gross margin and hence construct 52 percent GM (down 70 basis points QoQ; 450 basis points YoY), leading in a 50 basis point YoY expansion of EBITDA margin to 23.7%. Ebitda and recurring PAT are so expected to increase by 4.1% YoY and 1.7% YoY, respectively, it stated.
