HUL shares plummets 7% as Q1 PAT falls 3% to ₹2,673 crore
Hindustan Unilever Ltd (HUL) shares fell 7% after the company reported a 3% decline in Q1 net profit due to one-off tax credits from the previous year. Despite the profit dip, the company achieved its highest revenue growth in 13 quarters, driven by volume increases and price adjustments.
Why it matters
As India's largest FMCG company, HUL's performance is a key indicator of consumer demand and inflationary trends in the Indian economy.
Shares of Hindustan Unilever Ltd, (HUL) India’s largest FMCG company, on Wednesday plunged 7% on the Bombay Stock Exchange (BSE) as the company’s quarterly results fell short of investors’ expectations, even as it saw higher revenues.
HUL’s first quarter (Q1) net profit fell 3% year-on-year (YoY) to ₹2,673 crore due to one-off tax credit gain made in the year ago period. Rising input costs and inflationary pressures remained key challenges, affecting operating margins during the quarter.
However, the company delivered it’s highest revenue growth in 13 quarters, with underlying sales growth (USG) of 10%, supported by higher sales volumes and selective price increases. USG refers to the increase in turnover for the period, excluding any change resulting from acquisitions and disposals. Revenue from sales jumped 10.26% YoY to ₹17,149 crore in the review period.
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