INSUBCONTINENT EXCLUSIVE:
FMCG major Hindustan Unilever is set to announce its financial results for the September quarter on Friday
Brokerage firm HDFC Securities expects HUL to post revenue growth of 13 per cent in July-September, with 17.50 per cent year-on-year rise
in adjusted profit after tax
The brokerage house sees adjusted EPS at Rs 5.70 over Rs 6.7 in Q2 of FY18
EBITDA may rise 18.3 per cent on a year-on-year basis
Improvement in rural business, commentary on competition, especially in natural products and oral care, pricing actions as well as new
launch strategy are among key monitorables in the quarterly numbers of the FMCG firm.
The stock was up 1.18 per cent at Rs 1,546.60 on the
BSE today ahead of the quarterly numbers.
According to Nirmal Bang Securities, the company is expected to deliver volume-led double-digit
revenue growth in Q2 2018-19
It projected volume growth in the range of 8-9 per cent and value growth of around 4 per cent during the quarter
Volume-led growth assumption is based on broad-based demand for its products across categories, improved performance of select portfolios
and new products like the launch of Brylcream range exclusively on Amazon
Home and personal care segment will continue to drive growth while the merger of food and refreshment businesses is likely to bring in
On the cost side, the pressure has accelerated, with crude oil prices moving up
But other key raw materials like PFAD, palm oil and the like have declined on a YoY basis
We, therefore, expect operating margin expansion of 80 bps YoY led by robust growth of premium portfolio, operating leverage and stringent
12.70 per cent YOY rise in HUL's net profit, EBITDA and net sales, respectively, for the quarter in question
