Last updated: 20 Oct, 2021 | 07:27 am
Profit in line with estimates - Hindustan Unilever Ltd (HUL) has reported a 8.9% on year rise in net profit to Rs 2,187 crore meeting street estimates. Analysts predicted the company's profit to be around Rs 2,175 crore. The company's net profit in the same quarter last year was Rs 2,009 crore. Sequentially the profit rose by 6%.
Revenues rise - HUL reported 11.2% on year increase in revenue to Rs 12,724 crore exceeding analysts’ estimates. Analysts had estimated the company's revenue at Rs 12,570 crore. Last year for the same quarter, the company reported revenue from operations of Rs 11,442 crore. Sequentially the revenue rose by 6.8%.
Segment-wise growth - HUL has reported healthy growth across all its segments. Revenue from the home care segment increased 15.7% to Rs 3,838 crore, and that from the beauty and personal care business rose 10.3% to Rs 5000 crore. Revenue from the foods and refreshment unit rose 7.2% at Rs 3,622 crore in the July-September period, as against Rs 3,319 crore a year ago.
HUL Q2 results highlights:
Operating Margins - HUL has reported 9.2% on year growth in EBITDA to Rs 3,132 crore. However due to high input prices the EBITDA margin shrank 50 basis points on year to 24.6% for the quarter ended September. Analysts had estimated the margin at 24.5%.
Overall growth -The domestic volumes grew 11% year-on-year as rural demand sustained on the back of good Kharif sowing. Urban consumption has also started to recover. Volume growth, however, slowed sequentially to 4% in Q2 when compared to 9% in the first quarter, indicating that the consumer sentiment hasn't fully revived.
Dividend - The company declared an interim dividend of Rs 15 per equity share for the financial year ending March 31, 2022.
HUL Q2 results 2021 review:
HUL has delivered Jul-Sep 2021 quarterly results in line with street expectations. The company witnessed sequential improvement in trading conditions in this period, though the environment remained challenging with higher input cost inflation and subdued consumer sentiments. Performance was broad-based with all three divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration.
Calibrated price increases and sharp focus on savings has helped HUL protect its business model while ensuring the right price-value equation for consumers. The company remains cautiously optimistic about demand recovery going forward. The shares fell almost 4% to Rs 2,577 after the results were announced on NSE.