Hindustan Unilever Q3FY22 Preview: Revenue seen at Rs 13,010 crore, PAT at Rs 2,210 crore

20 Jan 2022 , 07:51 AM

Result date: 20th January, 2022
Recommendation: Add
Target price: Rs2,630
(Source: IIFL Research)

FMCG giant Hindustan Unilever (HUL) is all set to report 10% YoY growth in revenue, fueled by volume growth of 1-3% and price hike of 7-8%. Growth will be led by the beauty and personal care or BPC, and homecare categories. Food business could post mid-single digit revenue growth during the quarter.

EBITDA margin could inch up marginally as price hikes and lower marketing and overhead spends partly offset pressures arising from higher raw material prices.

Company’s PAT could grow 15% on a YoY basis and will be aided by healthy growth in other income.

Important management insights to watch out for:
– Outlook on rural demand
– Trends in personal care, out of home and discretionary categories
– Input cost inflation, scope for future price hikes
– New launches

Rs. Crore	December 2021 estimates	YoY change
Revenue	13,010	10%
EBITDA	3,200	12%
EBITDA margin	24.6%	50 bps
PAT	2,210	15%

Source: Consensus estimates