HUL Q3 Result: Strong results beating street estimates

Profit beats estimates - Hindustan Unilever Ltd (HUL) has reported a 16.8% on-year rise in standalone net profit to Rs 2,243 crore compared to Rs 1,921 crore in the same quarter last year. Sequentially, the revenue was flat (Rs 2,187 crore). Analysts predicted the company's profit to be around Rs 2,184 crore. 

Revenue rise - HUL reported a 10.23% on-year increase in revenue (including other income) to Rs 13,183 crore exceeding analysts’ estimates. Analysts had estimated the company's revenue at Rs 12,968 crore. Last year for the same quarter, the company reported revenue from operations of Rs 11,959 crore. Sequentially the revenue rose by 3.6%.

Operating Margins - HUL has reported 17% on year growth in PAT to Rs 2,243 crore. The EBITDA margin increased 100 basis points on year to 25.4% for the quarter ended December. Analysts had estimated the margin at 24.5%.

Segment-wise growth - HUL has reported healthy growth across all its segments. Revenue from the home care segment increased 23% to Rs 4,193 crore, and that from the beauty and personal care business rose 7% to Rs 5,175 crore. Revenue from the foods and refreshment unit rose 3% at Rs 3,466 crore in the Oct-December period, as against Rs 3,356 crore a year ago.

Overall growth - Growth in the quarter was competitive and profitable with Domestic Consumer Growth of 11% and Profit After Tax (PAT) growth of 17%. Business fundamentals remained strong with handsome market share gains in all divisions, both urban and rural markets and across price segments. Underlying Volume Growth at 2% was significantly ahead of the market.

HUL Q3 results 2021 review:

HUL has delivered Oct-Dec 2021 quarterly results beating street expectations. The company delivered a strong and resilient performance in the December quarter despite the moderation in market growths and significant levels of commodity inflation. Performance was broad-based with all three divisions growing competitively. 

In the near term, the operating environment will continue to remain challenging for the company. In this scenario, the management has a plan to manage the business with agility, continue to grow consumer franchise whilst maintaining margins in a healthy range. The HUL shares closed 1.94% lower to Rs 2,265 on Thursday.