HUL net profit falls amid tepid demand
HUL), India's largest consumer goods maker, reported a 6% drop in net profit in the wake of flagging demand despite price cuts and is looking to volume-led growth if commodity rates remain stable. That will help the company hold prices or lower them further, while a bountiful monsoon, as predicted by the weather department, could see rural demand rising in time.
March quarter net profit at Unilever's India unit declined to ₹2,406 crore, below analyst expectations, from ₹2,552 crore a year earlier. Revenue was little changed at ₹14,693 crore against ₹14,638 crore a year earlier.
'Below Street Expectation'
For the year ended March, the company posted a 3% increase in revenue to ₹59,579 crore while net profit rose 2% to ₹10,114 crore. The company proposed a final dividend of ₹24 per share.
«We would like very much for us to grow faster,» HUL managing director Rohit Jawa said after the earnings announcement on Wednesday. «There is not much price in the market for anyone. When price comes back, we will go back to our trend rate and will clock those toplines and so will others. Rural areas are improving and that growth will come back to us.»
The maker of Rin detergent and Lux soap said sales volume, or number of units, rose 2% in the fiscal fourth quarter, indicating growth was entirely driven by demand rather than price hikes. HUL's performance is considered a proxy for broader consumer sentiment in India.
«What we can do is to drive competitive volume growth,» Jawa said. «There is growth in the market but is not
