HUL Q1 Results Overview
Analysts are eagerly awaiting Hindustan Unilever Ltd.’s financial results for the January–March quarter, set to be announced soon. Expectations are tempered as the FMCG giant faces the challenge of subdued growth in the industry. The focus is on volume growth rather than price hikes, with urban demand under stress while rural demand shows resilience.
Rural Resilience and Revenue Forecast
Rural demand continues to be a shining beacon amidst the FMCG sector’s subdued performance. Fueled by favorable weather conditions and anticipation of a healthy monsoon, rural areas are expected to drive momentum in the coming months. This resilience in the rural market is a positive sign for the industry.
Despite challenges, analysts predict a marginal uptick in overall revenue growth for HUL. The forecast indicates a 2.4% increase to Rs 16,076 crore compared to the previous quarter. However, expectations remain cautious due to possible margin contraction.
Analyst Expectations for HUL
Analysts foresee the Ebitda margin for HUL either contracting or remaining stagnant in the upcoming results. The anticipated revenue growth is projected to be a combination of 2% Underlying Volume Growth and 1% Underlying Price Growth, with product price hikes in categories like tea and soaps.
Consolidated volumes are expected to witness a 3-4% year-on-year growth, indicating a moderate but steady performance. Despite a 3% volume growth in Q1 reflecting underlying demand weaknesses, analysts anticipate a gradual improvement in the second half of the fiscal year.
Stay informed on how the FMCG sector is bracing for the impact of weather patterns and consumer demand fluctuations, influencing top-line growth in the upcoming quarter.
Source: NDTV Profit
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