Q1FY23 Preview: HUL: Revenue seen at Rs136,754 million, PAT at Rs22,442 million

19 Jul 2022 , 09:13 AM

Result date: 19^th July, 2022
Recommendation: Add
Target price: Rs2,350

Hindustan Unilever (HUL) is likely to post volume growth of 3% in the June 2022 quarter, as compared to the year-ago quarter. This marks slight uptick from the volume growth of 0% and 2% witnessed in the preceding two quarters. Going forward, though analysts at IIFL Capital Services expect volume growth to moderate amid sharp inflation across commodities, which in turn, could impact consumption demand.

Overall, the company could post sales growth of 14% during the quarter, driven largely by pricing growth of 11%.

EBITDA margin could contract slightly on a year-on-year basis, amid continued input cost pressures. A higher tax rate would result in a growth of 6% in Profit After Tax (PAT), lower than the EBITDA growth of 12%.

Important management insights to watch out for:

• Demand trends across rural and urban markets
• Market share movement in key segments
• Outlook on pricing action and margin

 

(Rs million)	June 2022 estimates	YoY change
Revenue	136,754	14.0%
EBITDA	32,768	12.2%
Profit After Tax	22,442	6.0%

Source: IIFL Research