The share price of Hindustan Unilever (HUL) fell more than 5% on Thursday as a result of the company’s disappointing Q2 earnings. On the BSE, HUL’s stock fell as much as 5.78% to ₹2,504.15 per share.
Compared to ₹2,717 crore during the same period last year, FMCG giant Hindustan Unilever reported a 4% decline in its standalone net profit for the second quarter of FY25, coming in at ₹2,612 crore. In Q2FY25, HUL’s operating revenue increased slightly by 2% to ₹15,319 crore from ₹15,027 crore YoY. The business claimed a 3% increase in volume.
What Should Investors Do?
Brokerage company Motilal Oswal thinks HUL can continue on its upward growth trajectory even while global demand is poor. It emphasized that HUL has a comparatively higher saliency from rural, which is still doing well. In light of the impact on raw material costs, we reduced our growth projections by 2% for FY25 and FY26, respectively. HUL should be able to recover steadily thanks to its broad range of products and presence in many price ranges. It is anticipated that HUL will handle the white space, especially in BPC and F&R, under the new leadership of Mr. Rohit Jawa. When macroeconomic improve, the company’s strong position in home care can be leveraged, according to MOFSL.
HUL Q2 Results
HUL posted a net profit of Rs 2,591 crore in its Q2 earnings, representing a 2.8% decrease from Rs 2,668 crore. According to Business Standard consensus, the net profit was expected to drop to Rs 2,664.8 crore. The Fast Moving Consumer Goods (FMCG) behemoth’s revenue for the second quarter was Rs 15,926 crore, up 1.9% from Rs 15,623 crore in the same period last year. Revenue during the second quarter was estimated by Business Standard to be Rs 15,659.13 crore.
