MUMBAI - Hindustan Unilever (LON:ULVR) Limited (HUL), a leading consumer goods company in India, anticipates a moderate increase in its third-quarter earnings, with revenues estimated to reach Rs 15,324 crore, marking a year-over-year (YoY) growth of one percent. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to rise by five percent YoY to Rs 3,699 crore. Profit after tax (PAT) is also projected to grow by seven percent YoY to Rs 2,669 crore.
Despite the slight uptick in revenue and profitability, HUL's volume growth remains subdued at two percent. This is attributed to persistent challenges in rural demand, which continue to impact the company's performance. Investors are keenly awaiting management commentary on the outlook for future demand and profitability, particularly in light of the anticipated improvement in margins by one percentage point to twenty-four percent.
The company's stock performance has reflected these challenges, with a decline of over four percent in the past year. Today, HUL's shares have seen a minor drop of 0.83%, bringing the share price to Rs 2,541.8. This latest financial projection from HUL sets the stage for its upcoming detailed earnings report, which will be scrutinized for signs of recovery or further headwinds in the consumer goods sector.
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