HUL Q3 earnings beat estimates, PAT rises by nearly 17% yoy to Rs2,243cr; Stock rises over 2% so far today

21 Jan 2022 , 11:51 AM

FMCG giant, Hindustan Unilever (HUL) stock witnessed a stellar buying on Friday after the company beats estimates in its financial books for the quarter ending December 2021 (Q3FY22).

In Q3FY22, HUL posted a 16.76% growth in standalone net profit of Rs2,243cr compared to Rs1,921cr in the same period last year.

Total revenue stood at Rs13,183cr in the quarter under review, rising by 10.23% from Rs11,959cr in the same quarter a year ago.

In its audit report, HUL said that “growth in the quarter was competitive and profitable with Domestic Consumer Growth of 11% and Profit After Tax (PAT) growth of 17%. Business fundamentals remained strong with handsome market share gains in all our divisions, both urban and rural markets and across price segments. Underlying Volume Growth at 2% was significantly ahead of the market.”

EBITDA margin at 25.4% improved 100 bps YoY.

HUL said, “in the context of unprecedented inflation, we continue to manage our business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of Net Revenue Management. We continue to invest competitively behind our brands.”

Sanjiv Mehta, Chairman and Managing Director commented, “We have delivered a strong and resilient performance in the quarter despite moderation in market growths and significant levels of commodity inflation. I am particularly pleased that the growth is extremely competitive with our market share gains being the highest in more than a decade. Our performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business. In the near-term, operating environment will continue to remain challenging. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth.”

At around 11.47 am, HUL was trading at Rs2288.70 per piece up by 1.2% on Sensex. The stock has touched an intraday high of Rs2316.40 per piece and so far has risen by 2.4% today.