However, the stock reversed all of its post-earnings gains of as much as 2.5% after the management, in its investor presentation said that the gross margins will moderate going forward as it continues to deliver the right price-value proposition.
The company is also stepping up investments to land portfolio transformation in high-growth demand spaces supported by a strong innovation pipeline.
The Mumbai-based company reported revenue of ₹15,213 crore during the March quarter, which was 2.4% higher compared to the same quarter last year. A CNBC-TV18 poll had projected HUL’s revenue to grow by 2% during the quarter to ₹15,161 crore.
HUL’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 1% during the March quarter to ₹3,466 crore. The figure is marginally lower with the consensus estimates of analysts, which pegged the figure to be ₹3,505 crore.
The company’s EBITDA margin stood at 22.8%, in comparison to 23% last year. The CNBC-TV18 poll had pegged the figure at 23.1%. The management expects margins to be between the 22% to 23% range.
Net profit for the period stood at ₹2,493 crore, which is in-line with the CNBC-TV18 poll of ₹2,475 crore.
Here’s how Hindustan Unilever’s various segments fared during the quarter:
- Home care business saw revenue of ₹5,815 crore from ₹5,709 crore last year.
- Beauty & Wellbeing business revenue stood at ₹3,265 crore from ₹3,062 crore last year.
- Personal Care revenue stood nearly flat at ₹2,126 crore from ₹2,063 crore last year.
- Foods business revenue stood at ₹3,896 crore, nearly the same as last year’s figure of ₹3,910 crore.
37% of HUL’s revenue during the quarter came from the Home Care business, while 25% came from Foods. Beauty & Wellbeing, Personal Care businesses contributed 21% and 15% respectively.
The company’s board has also approved a final dividend of ₹24 per share, taking the full year payout to shareholders to ₹53 per share. The company’s has not shared any record date for the said dividend yet.
Shares of Hindustan Unilever are trading 2.5% higher post the results announcement at ₹2,482.9.
