InvestorQ : What were the key highlights of the quarterly numbers of Hindustan Unilever for the September 2022 quarter?
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What were the key highlights of the quarterly numbers of Hindustan Unilever for the September 2022 quarter?

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Juvina Maggie answered.
1 month ago
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Let me first share with you the gist of the financial performance of Hindustan Unilever for the September quarter and I must say, it was quite impressive in tough market conditions.

Hindustan Unilever

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 15,144

₹ 13,046

16.08%

₹ 14,626

3.54%

Operating Profit (Rs cr)

₹ 3,207

₹ 2,945

8.90%

₹ 3,121

2.76%

Net Profit (Rs cr)

₹ 2,665

₹ 2,181

22.19%

₹ 2,381

11.93%

Diluted EPS (Rs)

₹ 11.35

₹ 9.28

₹ 10.13

OPM

21.18%

22.57%

21.34%

Net Margins

17.60%

16.72%

16.28%

Here are some of the key highlights of the quarterly results announced by Hindustan Unilever for the September 2022 quarter.

a) Hindustan Unilever grew top line sales by 16.08% for the September 2022 quarter at Rs15,144 crore on a consolidated basis and at 3.54% on sequential basis over June 2022.

b) Hindustan Unilever reported the strongest and most robust growth drivers from the home care segment which grew 34%. In comparison, the segments like beauty & personal care as well as the food & refreshments verticals were more subdued.

c) How did they fare on operating profit performance? Not surprisingly, it was the beauty and personal care vertical whose contribution was nearly twice that of the home care segment, which is due to the high margin business and low impact of input costs.

d) On the positive side, the underlying volume growth for HUL overall was 4% with 75% of business verticals gaining volumes and market share. Home care segment reported double digit volume growth, which is line with the trends in previous quarters.

e) Net profits on a post-tax basis for September 2022 quarter grew at an impressive 22.2% for the quarter at Rs2,665 crore. Profits were also up sequentially at 11.9%, showing some high frequency traction too.

f) The profit growth came on the back of improved operating performance and a tax credit of Rs260 crore from prior assessments, which boosted profits.

g) Despite passing back some of the input cost cuts to customers in the form of lower prices, the EBITDA margins at 23.3% were relatively strong.

h) PAT margins improved to 17.60% in the Sep-22 quarter as against 16.72% in the Jun-22 quarter and a stable 16.28% in the June 2022 quarter.

i) The Board of Directors have declared an interim dividend of Rs17 per share, subject to shareholder approval.

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