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  1. HUL Q3 results today: Muted show likely on input cost inflation, subdued seasonal demand; shares up 1%

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HUL Q3 results today: Muted show likely on input cost inflation, subdued seasonal demand; shares up 1%

Upstox

2 min read | Updated on January 22, 2025, 09:28 IST

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SUMMARY

HUL's revenue is expected to grow 3.3% year-on-year, according to a consensus estimate of analysts tracked by Bloomberg. It would be a price-led growth as the company took price hikes in tea and soaps, reports added.

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HUL, which owns brands like Dove, Vim, Surf Excel, and Horlicks, is expected to have taken a price hike of approximately 2–3% in the December quarter.

HUL, which owns brands like Dove, Vim, Surf Excel, and Horlicks, is expected to have taken a price hike of approximately 2–3% in the December quarter.

HUL Q3 results: Shares of Hindustan Unilever (HUL), the FMCG giant, were trading nearly 1% higher at ₹2359.30 apiece on the BSE in the opening deals on Wednesday, January 22, ahead of the company's December quarter (Q3 FY25) results announcement due later in the day.

The company, as per news reports, is likely to post a muted set of numbers due to multiple headwinds such as adverse mix dynamics, input cost inflation, and subdued seasonal demand, collectively moderating the overall growth trajectory.

HUL's revenue is expected to grow 3.3% year-on-year, according to a consensus estimate of analysts tracked by Bloomberg. It would be a price-led growth as the company took price hikes in tea and soaps, reports added.

HUL, which owns brands like Dove, Vim, Surf Excel, and Horlicks, is expected to have taken a price hike of approximately 2–3% in the December quarter, following a period of stable prices in the second quarter.

According to a Business Standard report, analysts estimate HUL's adjusted profit after tax (PAT) at ₹2,577.97 crore, on average, implying a rise of 1.89% year-on-year (YoY) as compared to ₹2,530 crore a year ago. On a quarter-on-quarter (QoQ) basis, PAT is likely to slip marginally by 0.84%.

"The company's revenue, on average, for the third quarter ended December 31, 2024, is anticipated at ₹15,688.22 crore as compared to ₹15,570 crore a year ago, which implies a rise of 0.75% YoY. Sequentially, revenue may decline by 1.5%," the report added.

Key monitorables include management commentary on the company's outlook on demand and growth.

Gross margins are expected to contract over the previous year due to an unfavourable product mix, with delayed winter impacting sales of high-margin personal care products. Also, hyperinflation in palm oil or palm fatty acids—a key input used in making soaps—as well as key agri commodities like tea, coffee, and milk is adding pressure, according to a report by NDTV Profit.

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