Latest news with #HindustanUnileverLtd
Hans India
2 hours ago
- Business
- Hans India
HUL's Q1 net up 6% to Rs 2,768 cr
New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported a 5.97 per cent rise in its consolidated net profit to Rs2,768 crore for the June quarter of FY26, helped by gains from a re-estimation of taxes paid in the previous year. The company had logged a net profit of Rs2,612 crore in the April-June quarter a year ago, according to a regulatory filing from HUL, the maker of popular brands as Dove, Lifebuoy, Lux, Lakmé, and Sunsilk. Revenue from the sale of products of the leading FMCG firm was up 5.15 per cent at Rs16,296 crore in the June quarter, led by volume growth. This was at Rs15,497 crore in the corresponding quarter a year ago. 'HUL reported a consolidated underlying Sales Growth (USG) of 5 per cent and an Underlying Volume Growth (UVG) of 4 per cent,' the company said in its earnings statement. In the June quarter, HUL's profit before tax was lower by 6.4 per cent to Rs3,303 on a year-on-year basis. It was at Rs3,529 crore in the corresponding June quarter of FY25. While its Profit after Tax (PAT) was up nearly 6 per cent. Commenting on the results, HUL CEO and Managing Director Rohit Jawa said FMCG demand has continued to remain stable, with a gradual uptick in recency. 'Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter. As a result, we delivered competitive, broad-based growth with an Underlying Sales Growth of 5 per cent, driven by an Underlying Volume Growth of 4 per cent, at a consolidated level,' he said. Over the outlook, Jawa said he expects this 'gradual recovery to be sustained'. The company's market valuation surged by Rs19,936.28 crore to Rs5,92,531.67 crore. The stock emerged as the biggest gainer among the Sensex and Nifty firms. According to HUL, the difference 'is on account of a one-off impact of re-estimation of tax provisions with respect to the potential disallowance of certain expenses pertaining to prior years.' During the quarter, HUL's EBITDA margin stood at 22.8 per cent, down 130 basis points year-on-year, as the FMCG major continued to step up investments in its business.
Mint
6 hours ago
- Business
- Mint
Best stock recommendations today: MarketSmith India's top picks for 1 August
On Thursday, the Nifty 50 declined 0.35% amid heightened volatility, weighed down by renewed foreign institutional selling and global trade uncertainties. Market sentiment took a hit following US President Donald Trump's unexpected threat of a 25% tariff on Indian imports, which pressured export-oriented sectors. Despite mild intraday recovery attempts, broader market weakness and persistent global headwinds kept the index in the red, particularly on the day of the weekly derivatives expiry. Two stock recommendations by MarketSmith India: Hindustan Unilever Ltd (current price: ₹2,521.20) Why it's recommended: Rural demand recovery and volume-led sales, preimmunized brand portfolio, strategic investment, and corporate restructuring. Key metrics: P/E: 55.69 | 52-week high: ₹ 3,035 | Volume: ₹1,382 crore Technical analysis: Trending above all its key moving averages, momentum improvement. Risk factors: Elevated input cost and its pressure on margin, sluggish urban consumption, and execution risk around demerger. Buy: ₹2,450-2,500 Target price: ₹3,000 in two to three months Stop loss: ₹2,350 Godrej Consumer Products Ltd (current price: ₹1,259) Why it's recommended: Strong revenue and volume momentum, double-digit growth in Africa and the Middle East, and margin recovery. Key metrics: P/E: 65.30 | 52-week high: ₹1,541 | Volume: ₹200 crore Technical analysis: Rebound from 100-week moving average Risk factors: Volatile commodity prices, soft urban demand. Buy at: ₹1,220-1,250 Target price: ₹1,515 in two to three months Stop loss: ₹1,170 How Nifty 50 performed on 31 July On Thursday, the Nifty 50 opened with a gap-down and witnessed a highly volatile session on account of the weekly derivatives expiry. Although the index recovered from intraday lows and briefly turned positive, it failed to sustain higher levels and slipped back into negative territory during the final hour of trade. Barring Nifty FMCG, all major sectoral indices and broader market indices ended in the red. Market breadth weakened notably, with the advance-decline ratio settling at 1:2, indicating broad-based weakness. From a technical perspective, the Nifty 50 remains below its 50-DMA, underscoring a sustained negative bias in the trend. The relative strength index (RSI) is sloping downward and currently hovers around 40, indicating weakening momentum. Additionally, the MACD continues to trade below its signal line and the central line, maintaining a negative crossover. This confluence of indicators suggests a cautious near-term outlook, with limited signs of immediate reversal unless key resistance levels are reclaimed. According to O'Neil's methodology of market direction, the market status has been downgraded to an "Uptrend Under Pressure" as the Nifty breached its 50-DMA and the distribution day count rose to five. The index witnessed another session of volatility on Thursday, facing stiff resistance near 25,000 and ultimately ending with a negative bias. The index struggled to sustain intraday gains, reflecting broader market weakness and cautious investor sentiment. Looking ahead, 24,600-24,480 remains a critical support area that may help contain further downside. On the upside, a decisive breakout above 25,000, followed by 25,300, will be essential to revive bullish momentum in the near term. How Nifty Bank performed yesterday On Thursday, Bank Nifty opened with a gap-down and witnessed high intraday volatility, oscillating within a broad range of 55,547-56,406 before settling with a loss of 0.34%. Both private and PSU Banking segments experienced choppy trading. However, the PSU Banking index underperformed and contributed more significantly to the downside. Similarly, the FINNIFTY index ended 0.20% lower, reflecting broader weakness in the financial space amid subdued investor sentiment. Technically, the index remains below its 50-DMA, reinforcing a weak short-term structure. The relative strength index (RSI) continues to trend with a negative bias and is currently positioned around 42, reflecting subdued momentum. Additionally, the MACD sustains its negative crossover and continues to trade below the signal line, indicating that any potential upside may remain limited. Overall, the technical setup points to a cautious outlook, with the index lacking strong directional conviction in the near term. Despite this, according to O'Neil's methodology of market direction, Bank Nifty remains in a 'Confirmed Uptrend,' a status it has maintained consistently over the past several weeks. On Thursday, Bank Nifty declined to 55,500. However, it managed a partial intraday recovery before closing on a negative note. Moving ahead, 55,500 remains a crucial support level, and a decisive breach below it could trigger further downside pressure. On the upside, immediate resistance is seen around 56,500. A breakout above or breakdown below this defined range is likely to set the next directional move for the index, making these levels critical to watch in the coming sessions. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website. Trade name: William O'Neil India Pvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
12 hours ago
- Business
- Business Standard
HUL Q1 profit rises 5.6% to ₹2,756 cr, beats estimates on volume growth
Hindustan Unilever Ltd (HUL) reported a 5.6 per cent year-on-year (Y-o-Y) rise in consolidated net profit for the April–June quarter of 2025-26 (Q1FY26), beating analysts' expectations as both rural and urban demand showed signs of improvement. Volume growth rebounded to 4 per cent after three consecutive quarters. India's largest fast-moving consumer goods (FMCG) company posted consolidated net profit of ₹2,756 crore in Q1, topping Bloomberg's consensus estimate of ₹2,608 crore. Revenue rose 5.1 per cent Y-o-Y to ₹16,514 crore, beating the street estimate of ₹16,076 crore. Sequentially, HUL revenue was up 5.4 per cent, and its net profit expanded 11.9 per cent. 'We can start to see in market trends, our rural growths that had lagged initially are back to growing every quarter, and they have gradually recovered and are sustaining,' said Rohit Jawa, chief executive officer and managing director of HUL, at a press conference following the earnings release. Jawa concluded his 37-year career with Unilever, passing the HUL's leadership to Priya Nair. While rural markets led the recovery, Jawa noted that urban demand, though still lagging, has started to improve, driven largely by consumption in smaller cities and towns. The company said part of the year-on-year profit increase was due to a one-time tax gain resulting from a re-estimation of provisions tied to the potential disallowance of certain prior-year expenses. Commenting on macroeconomic conditions, Jawa said there are 'three thirds of the economy'. The top one third by value is the formal urban, followed by the informal urban and then the informal rural. 'We see that the informal rural and the informal urban sectors are resilient and are getting better. That part is very important for HUL because we serve every Indian,' he said. 'Our products are accessible to all. That is therefore good for our category and also good for consumption at large, because that's the large population, the rural consumers and the urban informal consumers.' Jawa acknowledged that the salaried class has been under pressure but sees gradual improvement in urban demand. 'It's moving in the right direction,' he said, adding that recent government initiatives, a favourable monetary policy stance, lower food inflation, and good monsoons provide a supportive backdrop for consumption growth. Ritesh Tiwari, executive director, finance & IT, and chief financial officer, said the company expects the first half of FY26 to outperform the second half of the previous financial year. HUL's profit before interest, depreciation, and tax (PBIDT) declined 4.0 per cent in the quarter under review to ₹3,791 crore. 'Commodities continue to display divergent trends year-on-year. However, on a sequential basis, we are beginning to observe signs of softening across key materials,' Tiwari said. He noted that HUL has increased investments across several areas of the profit and loss statement, resulting in an Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin of 22.8 per cent. This, he said, has contributed to broad-based and competitive growth, as well as steady gains in turnover-weighted market share The company continues to reshape its product portfolio to align with higher-growth segments. 'This is evidenced by a significant circa 500 basis points shift towards the future core and market maker segment in the past two years,' Tiwari said. 'As a result, our growth trajectory has steadily improved. In the moderating consumption environment, we have delivered mid-single-digit absolute volume growth in the last five quarters.' Tiwari added that market share gains have been driven by a focus on future-oriented channels and stronger performance in key categories such as laundry, skin cleansing, and hair care. Jawa said HUL is also ramping up its digital marketing efforts, now allocating more than half of its media spend to digital platforms, with half of that going toward social media. 'We're just going where the consumers are going,' he said.
Mint
15 hours ago
- Business
- Mint
HUL rides out of the woods in Q1
Consumption engines are coming to life in India's urban and rural markets, powering sales at Hindustan Unilever Ltd (HUL) after several dismal quarters. India's largest packaged consumer goods maker scored growth across all its verticals, beating Street estimates on sales and profit as it looked ahead to sunny days. Sales volumes at the maker of Lux soaps and Knorr soups grew 3% after three quarters of slowing growth, as the consumption-focused company gained from tax rebates for the middle class, lower interest rates, the start of rains, and its own entry into new segments. Net profit rose 8% to ₹ 2,732 crore on a 4% sales jump to ₹ 15,747 crore. Investors cheered the earnings, lifting HUL shares by 3.48% to ₹ 2,521.85 each at close. Rohit Jawa, HUL's outgoing chief executive officer (CEO) and managing director (MD), listed several key factors that are expected to boost consumer spending. Among these are income tax rebates, and lower repo rates that trim housing loan EMIs and boost purchasing power. He also noted that decreasing food inflation is providing much-needed relief to consumers. Consequently, HUL anticipates that the first half of the current fiscal year will outperform the second half of the previous one. "We feel that we are now cycling out some of the tough periods in the last few years,' Jawa told reporters at HUL's Mumbai headquarters. Optimism at FMCG industry's bellwether bodes well for the country's consumption sector as a whole, as the economy navigates challenges on external trade and technological disruption. Jawa's nearly four-decade stint at Unilever, which included roles like executive vice-president, North Asia and chairman, Unilever China, concluded on Thursday. He had served as HUL's MD and CEO for almost two years. Priya Nair, Unilever's president, beauty and wellbeing, takes over as new CEO on 1 August. Jawa also expressed gratitude for his 37 years at HUL and Unilever. 'I have worked across eight markets. I have, in the last 12 years, been a CEO of three very significant markets in Asia. I feel very grateful and also excited, because I feel I need to do something different now, in the second half of my career…try new things. I'm looking to chart a new profile of work and a new way of living,' Jawa said. Jawa also noted the resilience and improvement in both urban and rural informal sectors, a crucial segment for the company. While the salaried urban class faced recent stress, Jawa observed an uptick in urban consumption over the past few months, albeit a gradual one. Rural markets continue to sustain their improvement. He expressed optimism for mass consumption, attributing this it to a combination of fiscal and monetary policies, a favourable monsoon, and moderating food inflation. "Hopefully, this will sustain,' said Jawa. HUL's earnings before interest, tax, depreciation, and amortization (Ebitda) stood at ₹ 3,558 crore in the June quarter, with the Ebitda margin at 22.6%, a decline of 120 basis points over the year. Lower tax expenses due to a re-estimation of tax provisions aided profit after tax growth by 13%, the company said in its quarterly filings. The company's 3% volume growth for the June quarter also exceeded street estimates, coming after flat to 2% growth in previous quarters. Analysts had projected HUL's standalone profit at ₹ 2,580 crore, with a revenue of ₹ 15,960 crore. Jawa said there are visible signs of demand improvement across both urban and rural markets. The urban middle class, affected by high inflation, has been under stress, impacting demand for major consumer goods. HUL reported sales growth across all verticals during the quarter. Beauty and wellbeing saw 7% sales revenue growth, with low-single digit volume growth. Its personal care vertical (Lux, Closeup, Dove, Liril) grew 6%, driven by calibrated pricing actions due to commodity inflation. Foods delivered 5% sales growth. The company lowered tea prices in response to competition and lower input costs. The home care division (detergents and floor cleaners) reported 4% sales growth, with the company reducing prices in parts of this portfolio in the previous quarter to pass on commodity benefits and address competitive intensity. 'We expect commodities to be range-bound, and hence, we expect that going forward, our pricing will be at low single digits,' said Ritesh Tiwari, chief financial officer, HUL. Recent Kantar estimates indicate an overall FMCG volume growth slowdown to 3.9% for the 12 months ending June 2025. Household care, especially laundry and washing liquid, continues strong growth industrywide. Summer-centric categories were significantly impacted by unseasonal rains. In 2024, HUL unveiled its Aspire strategy, focusing on 'core', 'future core", and 'market makers' portfolios to accelerate growth and attract customers. 'Our growth is driven by our strategy to move to fast-growth spaces and to go where the growth is—new channels, new segments, and also grow competitively led by volumes. We have grown our market shares this quarter. Our real focus is now is to keep moving our portfolio to the faster growth spaces. As that segment of our business gets bigger automatically, our natural growth rate will go up,' said Jawa. Jawa said that 50% of HUL's total media spending is now on digital, with half of that on social media. 'We're just going where the consumers are going,' he said. The company will continue expanding existing brands into new adjacent spaces. Over the past year, HUL has revamped core brands like Lifebuoy and Vim, and launched premium brands such as Liquid I.V. and Hellmann's mayonnaise. It also acquired new-age personal care brand Minimalist for ₹ 2,955 crore this year, sold its Pureit water purifier business, and announced the demerger of its ice cream business. 'We have launched several global brands like Liquid I.V., Nexxus and Hellman's. We are building locally as well. If need be, we will acquire brands like Minimalist locally,' he said. 'Our core brands—which is half of our business—we have renovated most of the brands there, made them more contemporary. Our future core brands are extending to new adjacent spaces, new benefits and formats, and on market makers, which is already a ₹ 7,000 crore portfolio is all about innovation.' HUL will continue investing in its business as consumer demand improves. 'Taking the benefit of improved condition for FMCG consumption—the work that we had done with our portfolio, which is more premium, more future-focused—there is already a tailwind that is coming in the business. We had called out that we will further invest in the business…As we see gross margins going up, we will further invest the improved gross margin in the business,' said Tiwari. During the June quarter, ad spends for the maker of Surf Excel detergent increased by 7.6% year-on-year.
News18
18 hours ago
- Business
- News18
HUL shares climb 3.50 pc post Q1 earnings; mkt valuation surges Rs 19,936 cr
New Delhi, Jul 31 (PTI) Shares of FMCG major Hindustan Unilever Ltd (HUL) on Thursday climbed nearly 3.50 per cent after the firm reported a nearly 6 per cent rise in consolidated net profit for the June quarter of FY26. The stock rallied 3.48 per cent to settle at Rs 2,521.85 apiece on the BSE. During the day, it jumped 4.56 per cent to Rs 2,548.20. On the NSE, it went up by 3.43 per cent to end at Rs 2,521.20 each. The company's market valuation surged by Rs 19,936.28 crore to Rs 5,92,531.67 crore. The stock emerged as the biggest gainer among the Sensex and Nifty firms. Hindustan Unilever Ltd on Thursday reported a 5.97 per cent rise in consolidated net profit to Rs 2,768 crore for the June quarter of FY26, helped by gains from a re-estimation of taxes paid in the previous year. The company had logged a net profit of Rs 2,612 crore in the April-June quarter a year ago, according to a regulatory filing from HUL, the maker of popular brands such as Dove, Lifebuoy, Lux, Lakmé, and Sunsilk. Revenue from the sale of products of the leading FMCG firm was up 5.15 per cent at Rs 16,296 crore in the June quarter, led by volume growth. This was at Rs 15,497 crore in the corresponding quarter a year ago. PTI SUM SUM SHW (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 31, 2025, 17:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
