HUL Q2 Results: Revenue growth highest in 14 quarters; Volumes increase by 7%

Hindustan Unilever Ltd., (HUL), India's largest FMCG company, reported its September quarter results on Wednesday, October 28, which were largely in-line to slightly above what analysts were anticipating.

For the September quarter, HUL's revenue grew by 14.5% from the same quarter last year to ₹18,226 crore. HUL's revenue growth is the highest in the last 14 quarters, according to data compiled by CNBC-TV18.

Underlying volume growth during the quarter stood at 7%, which is the upper end of the 6% to 7% range that analysts were working with.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹4,089 crore, which is marginally higher than the estimate of ₹4,003 crore.

EBITDA margin stood at 22.4%, a contraction of 140 basis points compared to the 23.8% reported during last year's September quarter. The management has maintained that their EBITDA margins will continue to remain in the guided range of 22% to 24%.

Net profit during the quarter stood at ₹2,796 crore, which is largely in-line with the CNBC-TV18 poll of ₹2,818 crore. The profitability figure was nearly the same during the same quarter last year.

HUL's management in its investor presentation said that underlying demand environment continues to remain resilient, but warned that the commodity inflation is expected to continue in the short-term.

Here's how HUL's Various Business Segments Fared During The Quarter:

The home care business grew by 21.4% on a year-on-year basis during the quarter, well above the projected growth of 14% to 17%, supported by price hikes and liquids.

Beauty and Wellbeing segment grew by 15.7% during the quarter, also higher than the expected figure of 10% to 13%.

Personal Care segment grew by 8% on a year-on-year basis, the mid-point of the 5% to 11% expectation, led by cleansing and premium products, while the foods and refreshments (Ex-Ice Cream) business grew at 8.5% from last year, the upper end of the projected 6% to 8.5% range.

Shares of Hindustan Unilever are trading 1.7% lower on Wednesday after the results announcement at ₹1,787.3. The stock is nearing a 52-week low and is down 23% so far this year.