Hindustan Unilever Q4 results tomorrow: FMCG major's revenue may rise 1.1% YoY with 3% volume growth; margin seen flat

The FMCG assemblage has seen the spread betwixt municipality and agrarian maturation narrowing successful caller quarters helped by little base, bully harvest and terms cuts to bushed section competition. However, analysts judge this maturation is yet to beryllium reflected crossed user company’s performance.

Rural request betterment hinges connected higher authorities expenditure up of elections and softening inflation.

Also Read: Q4 results preview: FMCG assemblage apt to spot muted gross growth; margins to grow astatine a slower pace

Hindustan Unilever Q4 Results Preview

FMCG large Hindustan Unilever is expected to study gross maturation of 1.16% astatine ₹15,067 crore successful Q4FY24 from ₹14,893 crore successful the year-ago period, arsenic per mean estimates of 5 brokerages. HUL’s measurement maturation is apt to beryllium 3% for the quarter.

There shall beryllium an adverse interaction of ₹75 crore connected income successful Q4 owed to expiration of GSK consignment arrangement. Furthermore, royalty shall beryllium higher YoY arsenic 2nd twelvemonth kicks in.

HUL Q4 nett net successful the 4th ended March 2024 is estimated to emergence 2.71% to ₹2,538 crore from ₹2,471 crore, YoY.

“We expect request trends to beryllium akin to Q3FY24 with marginal betterment successful agrarian (across categories) connected a two-year basis. Urban continues to turn faster than agrarian and premium continues to bash amended than wide for HUL. Elongated winters are improbable to payment overmuch but commercialized inventory shall get cleared," Nuvama Institutional Equities said.

Also Read: Reliance Q4 result: Revenue up 11% YoY, PAT comes astir flat; 5 cardinal highlights

At the operating level, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) successful Q4FY24 is expected to summation 0.60% to ₹3,492 crore from ₹3,471 crore, YoY, portion EBITDA borderline is estimated to stay level astatine 23.2%, YoY, owed to accrued strength successful advertisement spends and higher different expense.

Brokerage steadfast Motilal Oswal Financial Services expects HUL to study 3% YoY home measurement maturation successful 4QFY24. The summation successful royalty rates and the termination of the organisation statement for OTC and oral attraction products of GSK volition interaction EBITDA. It expects gross borderline to grow 150 bps YoY owed to little earthy worldly costs.

Meanwhile, outlook connected contention from section and determination players and agrarian versus municipality request volition beryllium cardinal monitorable successful HUL Q4 results.

HUL stock terms has fallen implicit 15% successful 2024 truthful far, portion the banal is down much than 9% successful the past 1 year.

Read each Q4 results here

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 23 Apr 2024, 03:27 PM IST