Starting from Q1, post bifurcation of business, HUL growth momentum may pick up: Shirish Pardeshi

economictimes.indiatimes.com:

Shirish Pardeshi of Centrum Broking, says “in the next two quarters, the price value led growth would be lower and which will normalize from the first quarter or even in Q4, unless there is a drastic change in the economic indicators, which can push the volume.

Further Pardeshi says: “Starting from Q1, when the business is getting split into beauty and well-being and the personal care and also there is attention in terms of ad spends and promotion spends, it will definitely lift the growth momentum for the company.”


A top down miss, the underlying volume growth of 2%, how are you reading into the numbers and did you anticipate this kind of a downfall for HUL?
Shirish Pardeshi: Two things are very clear. We know that HUL draws a lot of business from the rural areas and there the expected recovery around the festive season has not happened. That is the first part.

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Second, the winter in the second half of the quarter has also fizzled out. The temperature, which was supposedly falling down, has not happened to that level and so somewhat delayed the winter. Now we are seeing that the winter has shifted to January. Those are the two things which had an effect on revenue.
Second, coming to revenue growth, when we look at the volume, we see a deflation. Clearly, when you look back the last 15 odd months, the price has increased almost 25%, which has now come down to a low single digit. So these two factors we had considered and we are of the opinion that volume will remain