For the entire year 2020-21, HUL reported an 18.38 percent increase in turnover at Rs 45,311 crore.
Hindustan Unilever (HUL) share price added over a percent intraday on July 22 ahead of its June quarter results that analysts said would be a mixed bag, with revenue showing growth against the previous year but margin may be subdued.
Brokerage firms expect no material benefit for the FMCG major from panic buying and consumer upstocking during the second wave of COVID-19.
The stock was trading at Rs 2,467.25, up Rs 33.35, or 1.37 percent. It touched an intraday high of Rs 2,479.10 and an intraday low of Rs 2,443.
Apart from the numbers, outlook for competition, new launches, raw- material cost, recovery in rural business and demand scenario will be the key monitorables.
Kotak Institutional Equities estimates a 13.8 percent year-on-year (YoY) rise but a quarter-on-quarter (QoQ) decline of 1 percent in HUL’s Q1FY22 revenue. Adjusted PAT may rise 9.3 percent YoY but fall 2.7 percent QoQ.
EBITDA may rise 11.3 percent but EBITDA margin may fall 56 bps YoY, Kotak said.
Brokerage firm Edelweiss Securities anticipates revenue and EBITDA to grow 11.1 percent and 6.5 percent, respectively, while PAT may dip 0.6 percent YoY.
“We expect HUL to see volume growth of 5 percent on a base of -8 percent YoY growth (Q4FY21 saw volume growth of 16 percent YoY on a base of -7 percent). On the pricing front, we expect 6 percent price growth given hikes taken in soaps, tea and laundry segment,” said Edelweiss.
Motilal Oswal Financial Services expects the company’s domestic volume growth at 5 percent YoY. It expects an 8.5 percent YoY rise in revenue while PAT can grow 2.4 percent YoY.
“Watch out for impact on sales of GSKCH products due to temporary destocking from distributor integration,” said the brokerage.
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