Q1FY24 Preview: Hindustan Unilever: Revenue seen at Rs. 154,775 million, PAT at Rs. 26,629 million

18 Jul 2023 , 10:54 AM

Result date: 20^th July, 2023

Recommendation: Add

Target price: Rs. 2,800

Hindustan Unilever (HUL) is expected to post 4.5% volume growth on a year-on-year basis, believe analysts at IIFL Capital Services. This is in sync with what the company reported in previous quarter. Overall sales growth would be 8%, which implies 4% pricing growth. BPC care business, premiumization trends for detergent and high single digit price hike in Nutrition business could together drive revenue growth during the quarter.

Analysts at IIFL Capital Services are forecasting a 62 basis points expansion in EBITDA margin YoY and 11% EBITDA growth. EPS is likely to grow at 11% YoY.

The company’s Profit After Tax (PAT) could grow 11.4% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across product segments and markets
• Pricing action and outlook on input costs, margins

Rs. Million	June 2023 estimates	YoY change
Revenue	154,775	8.0%
EBITDA	37,696	10.8%
Profit After Tax	26,629	11.4%

Source: IIFL Research