NEW DELHI :
Hindustan Unilever Ltd (HUL) on Tuesday reported an 8.86% improve in quarterly revenue from a yr earlier on measured worth hikes to offset rising uncooked materials prices and bettering demand.
Internet revenue at India’s largest shopper items maker rose to ₹2,187 crore within the three months ended 30 September from ₹2,009 crore a yr in the past. That compares with the ₹2,195.40 crore median estimate of 10 analysts surveyed by Bloomberg.
Income of the maker of Rin detergent and Lux soaps rose 11.2% to ₹12,724 crore from ₹11,442 crore a yr in the past. Analysts anticipated gross sales of ₹12,660 crore.
“The September quarter noticed a sequential enchancment in buying and selling circumstances, albeit remained difficult with unprecedented ranges of enter value inflation and subdued shopper sentiments. In opposition to this backdrop, we’ve got delivered a powerful efficiency, rising top-line in double digits and stepping up profitability sequentially,” Sanjiv Mehta, chairman and managing director, HUL, mentioned in a notice.
HUL mentioned gross sales in discretionary classes equivalent to skincare, colored cosmetics, detergents and ice-creams rose throughout the quarter, reflecting the drop in covid-19 instances, an increase in vaccinations, and improved mobility. Development was largely led by worth hikes made to stability costlier inputs.
Nevertheless, the corporate cited knowledge from researcher Nielsen to flag moderating progress inside the fast-moving shopper items trade in August and September, particularly within the rural markets. Shopper sentiment stays subdued, it mentioned, whereas commodity costs stay at “elevated ranges”.
Efficiency was broad-based, with all three HUL divisions rising competitively. HUL reported underlying quantity progress of 4% throughout the quarter in opposition to 1% a yr earlier. Nevertheless, this was sharply decrease than the 9% quantity progress within the June quarter.
Mehta mentioned calibrated worth will increase and its “laser-sharp give attention to financial savings” helped HUL shield its enterprise mannequin whereas making certain the fitting price-value equation for customers.
“We stay cautiously optimistic about demand restoration,” he mentioned.
HUL’s earnings come in opposition to the backdrop of rising mobility throughout India. Customers are stepping out, driving demand for private care merchandise and people linked to out-of-home consumption. The advance comes after a ferocious wave of covid infections wrecked shopper spending in April and Might.
Income of HUL’s residence care manufacturers grew 15%, pushed by excessive double-digit progress in cloth wash. “Family care continued to carry out properly and grew on a powerful base. Liquids and cloth sensations proceed to outperform. Calibrated worth will increase had been taken throughout cloth wash and family care portfolios to partially offset the excessive inflation in enter prices,” HUL mentioned.
Magnificence and private care income grew 10%, led by skincare, color cosmetics and hair care merchandise. The section drives 40% of the corporate’s home enterprise. “Soaps grew on a excessive base led by robust progress in magnificence and premium section. Calibrated strategy in the direction of worth improve has helped shield the enterprise mannequin as vegetable oil costs stay at elevated ranges,” the corporate mentioned.
Income within the meals and refreshment portfolio grew 7%.
Quantity progress throughout the quarter was “muted” at 4%, whereas the steep improve in uncooked materials costs led to a sharper pricing progress of seven%, ICICI Direct Analysis mentioned in a notice.
Abneesh Roy, an analyst at Edelweiss Securities, mentioned the laggards in quantity had been sanitation and hygiene merchandise, aside from meals and tea.
Supply: Live Mint