Hindustan Unilever Ltd.'s profit and volume growth missed market expectations in the December quarter, even as revenue and operating profit came in above estimates.
The FMCG major reported consolidated net profit of Rs 2,118 crore, down 30% year-on-year from Rs 3,027 crore, according to its notification to the exchanges on Thursday. Analysts tracked by Bloomberg had estimated Rs 2,615 crore.
Underlying volume growth stood at 4% during the quarter and fell short of estimates. Analysts tracked by Bloombeg had pegged the volume growth at 4.2%. The announcement sent the company's shared declining by as much as 3%. The country's largest FMCG company separately reported profit of Rs 4,485 crore from discontinued operations for the quarter.
Ebitda increased 2.7% to Rs 3,788 crore from Rs 3,689 crore, marginally above the Bloomberg estimate of Rs 3,770 crore.
ALSO READ: Q3 Results Live Updates: Check Earnings For HUL; HAL, Coal India And ONGC In Focus
Hindustan Unilever Q3 Results Highlights (Consolidated, YoY)
- Revenue up 5.7% at Rs 16,441 crore versus Rs 15,556 crore (Bloomberg estimate: Rs 16,156 crore)
- Ebitda up 2.7% at Rs 3,788 crore versus Rs 3,689 crore (Estimate: Rs 3,770 crore)
- Margin at 23% versus 23.7%. (Estimate: 23.3%)
- Net profit down 30% at Rs 2,118 crore versus Rs 3,027 crore (Estimate: Rs 2,615 crore)
- Profit from discontinued operations at Rs 4,485 crore.
Separately, HUL said it will invest Rs 824 crore to acquire the remaining 49% stake in Zywie Ventures, which operates the OZiva brand. It also divested its 19.8% holding in Nutritionalab for Rs 307 crore.
Shares of HUL erased opening gains and fell as much as 3.4% to Rs 2,377.40. That compares to a 0.4% declines in the country's benchmark NSE Nifty 50.
ALSO READ: Live: Nifty Below 25,900; Infosys Leads Decline Among IT Stocks
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
