HUL Q4 Results: Profit beats estimate despite higher inflation, dividend declared

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HUL Q4 Profit beats estimates - Hindustan Unilever Ltd (HUL) has reported a 8.58% on-year rise in standalone net profit to Rs 2,327 crore compared to Rs 2,143 crore in the same quarter last year. Sequentially, the revenue increased by 6.2% from Rs 2,243 crore. Analysts predicted the company's profit to be around Rs 2,180 crore. 

HUL Q4 Revenue rise - HUL reported a 10.40% on-year increase in revenue (including other income) to Rs 13,190 crore exceeding analysts’ estimates. Analysts had estimated the company's revenue at Rs 12,508 crore. Last year for the same quarter, the company reported revenue from operations of Rs 11,947 crore. Sequentially the revenue was flat.

HUL Q4 results 2022: Summary in brief

Operating Margins - EBITDA jumped 9.7% to Rs 3,245 crore in Q4FY22 over Rs 2,957 crore in Q4 FY21. The EBITDA margin remained healthy at 24.6% despite very high inflationary headwinds.Sequentially EBITDA margin declined by 90 basis points. 

Segment-wise growth - HUL has reported healthy growth across all its segments. Revenue from the home care segment increased 24% to Rs 4,750 crore, and that from the beauty and personal care business rose 4% to Rs 4,712 crore. Revenue from the foods and refreshment unit rose 5% at Rs 3,698 crore in the Jan-Mar period, as against Rs 3,511 crore a year ago.

Overall growth - Volume growth was flat but it continued to grow significantly ahead of the market, gaining value and volume market shares. During the quarter, the Turnover grew 10% with flat Underlying Volume Growth. 

Dividend - The board of the company also recommended a dividend of Rs 19 per share. Along with Rs 15 interim dividend paid in November, the total dividend for fiscal 2022 comes in at Rs 34 per share.

Management commentary - "In challenging circumstances, we have grown competitively and protected our business model by maintaining margins in a healthy range. I am also pleased that we have become a Rs 50,000 crore turnover company in this fiscal,” said Sanjiv Mehta, CEO and Managing Director, HUL.

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