HUL Q3 Results: Profit Meets Estimates, Volume Growth Exceeds Expectations

Hindustan Unilever Ltd.’s quarterly profit met estimates as volume growth surpassed expectations amid slowing consumption in India.

The December quarter witnessed an overall challenging market environment, reflecting a sharp slowdown in rural and discretionary spends, the company’s Chairman and Managing Director Sanjiv Mehta was quoted as saying in a statement to the exchanges.

“The demand outlook and market growth continue to remain challenging in the short-term,” Mehta said, adding that he’s confident of the medium-to-long-term prospects in the Indian FMCG sector. “I’m hopeful that policy measures will spur rural economy and drive consumption.”

That comes when growth among India’s consumer goods makers declined for the fifth straight quarter in the October-December period, Nielsen India said in a report, with volumes and prices rising at their slowest pace in four quarters.

Rural demand has stabilised during the quarter, while urban consumption weakened, the market researcher had said.

Segment-Wise Performance (YoY)

• Home care revenue rose 9.8 percent to Rs 3,456 crore.
• Revenue from beauty and personal care segment fell 2.8 percent to Rs 4,448 crore.
• Food and refreshment’s revenue rose 7.9 percent to Rs 1,865 crore.

Shares of HUL closed 1.2 percent lower ahead of the earnings announcement. The stock has declined 2.97 percent during the quarter ended December, compared with the Nifty FMCG Index’s 3.25 percent fall.