Hindustan Unilever Q1 results preview: Net profit likely to rise 9% to Rs 2,601 crore

Hindustan Unilever Ltd (HUL) is all set to report its financial results for the April-June period on Thursday, July 20. Investors will closely track the management's commentary on demand prospects in the rural and urban markets, its volume growth outlook, and its margin. 

According to Zee Business research, the FMCG major is estimated to report a consolidated net profit of Rs 2,601 crore for the first quarter of the current financial year driven by volume growth, which translates to an increase of 8.8 per cent compared with the corresponding period a year ago. The analysts expect HUL's revenue to grow 5.6 per cent on a year-on-year basis to Rs 15,448 crore.

The company's margin — a key measure of profitability — is expected to remain unchanged at 23 per cent. 

HUL — whose popular brands include Red Label, Surf Excel, Rin, Horlicks, Dove, Bru and Boost — is likely to report Rs 3,623 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA), which would mean a year-on-year increase of 6.5 per cent, according to Zee Business research.  

According to the research, HUL is likely to register margin expansion in about 75 per cent of its product portfolio. The analysts, however, expect modest growth in its beauty and personal care unit, and the impact of untimely rains and rising milk prices on its ice cream portfolio. 

The company is estimated to clock sales growth both in volume and value terms, with domestic volumes seen growing at 6-7 per cent, according to the research. 

How HUL fared in Q4

For the quarter ended March 31, 2023, Hindustan Unilever reported a 10 per cent year-on-year jump in net profit to Rs 2,552 crore over 11 per cent growth in revenue to Rs 14,638 crore. 

The company's margin shrank by 90 basis points to 23.7 per cent for the January-March period. Read more on HUL Q4 results

Hindustan Unilever (HINDUNILVR) shares

Hindustan Unilever shares finished the June quarter with a gain of 4.7 per cent, underperforming a 10.5 per cent rise in the benchmark Nifty index.

As of July 18, the HUL stock has risen five per cent in the past one year while the Nifty has grown 21.3 per cent. 

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