₹2,365.50, experiencing a nearly 4% decline on the BSE during Tuesday's intraday trade, accompanied by substantial trading volumes. Over the last two trading days, the fast-moving consumer goods (FMCG) company's stock has witnessed a 7% downturn following its disappointing performance in the December quarter (Q3FY24), attributed to sluggish demand.
Also read: Stock market today: Nifty 50, Sensex fall over 1.5%; mid, smallcaps bleed; investors lose over ₹8 lakh crore in a day On January 19, the FMCG company reported a standalone net profit of ₹2,519 crore for the December quarter of FY24, registering an increase of just 0.55 percent from ₹2,505 crore in the same quarter of the previous financial year, which came below street estimates. Moreover, the company disclosed a sequential decline of 7.28 percent in profits, dropping from ₹2,717 crore in the preceding quarter.
The FMCG giant stated in a regulatory filing that its total revenue stands at ₹14,928 crore, reflecting a 0.38 percent decrease from ₹14,986 crore in the corresponding quarter of the previous year. Additionally, there was a sequential decline of 0.6 percent in revenue, down from ₹15,027 crore in the prior quarter.
"Looking forward we expect gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery." said Rohit Jawa, CEO at HUL.
Also read: Five railway stocks including IRFC, RVNL slide up to 14% amid profit booking HUL stock has fallen by 8 per cent in the last six months and 8.73 per cent in the last one year on NSE. Brokerage firm Elara Securities downgraded the HUL stock
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