Hindustan Unilever share price falls over 2% as Q1 results disappoint; Should you buy? Here is what brokerages say
₹2,638.60 apiece on the BSE. The FMCG giant reported a standalone net profit for the quarter ended June 30, 2023 at ₹2,472 crore, up 8% from ₹2,289 crore in the year ago period. However, net profit dropped 10% sequentially from ₹2,553 crore.
Total standalone sales registered a growth of 7% YoY to ₹14,931 crore. Domestic volume growth of Hindustan Unilever was at 3%, missing estimates significantly. EBITDA in Q1FY24 rose 8.6% to ₹3,521 crore, while EBITDA margins improved by 40 bps YoY to 23.6%.
Read here: HUL Q1 results: Net Profit rises 8% to come in at ₹2,472 crore During the quarter, performance was driven by sustained double-digit growth in home care, which grew 10% on a high base of last year. Beauty & personal care and foods & refreshments’ performance remained muted with mid-single digit growth. Brokerages flagged concerns over HUL’s lower than expected volume growth as higher inflation is adversely impacting consumer spending. Here’s what brokerages have to say: Hindustan Unilever’s 1QFY24 performance fell slightly short of Motilal Oswal Financial Services’ expectations.
During the quarter, volumes grew 3% YoY versus expectation of 7% growth. The brokerage firm cut its EPS estimates by around 3-4% for FY24/FY25 to reflect the management commentary on demand, pricing, higher brand investment, and higher tax rates. “Despite its expanded scale, HUL sustains its dexterity, outperforming peers and maintaining a trajectory of steady growth.
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