Last updated: 20 Oct, 2020 | 04:28 pm
The current quarter saw a steady set of numbers from the FMCG giant thanks to the boost given by the GSK merger. The Q2 results were largely in-line with estimates. The management commentary suggests that while operations are back to pre-Covid levels, consumption in the Indian economy is taking longer than expected to recover, despite resilience in the rural segment.
Ramping up capacities in the health and hygiene space whose demand is expected to remain elevated in the near future will aid growth in the near-term. Products like Lifebuoy delivered double-digit growth across formats. Discretionary products and out-of-home products such as ice-creams, vending businesses, might continue to face some pressure. HUL continues to have a diverse portfolio with market leadership in many segments, and a strong balance sheet.