Hindustan Unilever Ltd. on Wednesday, reported its fourth-quarter standalone total revenue of ₹15,077 crore. The number was mostly in line with estimates.
The Earnings: The fast-moving consumer goods (FMCG) giant reported a net profit of ₹2,406 crore, which was slightly lower than the ₹2,450 crore mark that analysts had anticipated on average.
The revenue of the Indian subsidiary of the British company Unilever has grown marginally from ₹15,053 crore and net profit is down 5.7% from ₹2,552 crore on a year-over-year basis.
The results also compare with the 15,473 crore revenue and 2,519 crore net profit posted in the quarter prior that ended in December 2023.
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The Analyst Targets: Analysts had widely expected muted earnings growth for the entire FMCG sector in the fourth quarter. Nomura expected the company to post a revenue of ₹14,851 crore and a profit of ₹2,389 crore, while Kotak Securities expected the firm’s topline to be around 14,893 crore and bottomline at around ₹2,471 crore.
The FMCG Sector: HUL is the company behind many of India's easily recognized brands such as Kissan ketchup, Lipton tea, Wheel detergent, Axe deodorant, Pepsodent toothpaste, Sunsilk shampoo, the Lakme makeup brand and the Boost and Horlicks drinks for children.
With a wide range of products, it faces stiff competition from several companies across verticals. Some of the key competitors in the FMCG sector are Dabur India, Patanjali Foods, Colgate-Palmolive, Tata Consumer and ITC.
Most companies in the FMCG segment are yet to report earnings. Tata Consumer Products on Tuesday reported underwhelming results for the March quarter leading to a massive fall in its shares.
FIIs Pulling Back: Foreign Institutional Investors (FIIs) have been cutting their stake in Hindustan Unilever over the past year, with their overall share declining from 14.48% in the quarter ended June 2023 to 12.67% in the latest quarter.
This is not unique to the Rohit Jawa-led company but a wider pattern seen in FMCG sector, with FIIs also reducing stakes on average in HUL's peers. The only major exception is Colgate-Palmolive, where FII stake risen to 24.5% in the latest quarter from 2.15% in March 2023.
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