Q4FY22 Preview:HUL:Revenues seen at Rs131,989 million, PAT at Rs22,067 million

26 Apr 2022 , 09:26 AM

Result date: 27^th April, 2022
Recommendation: Add
Target price: Rs2,350
 
HUL is likely to report a moderate performance for the March 2022 quarter. Most of the categories it operates in have witnessed high single digit decline in sales volume during Jan-Feb 2022, even as sales value has been flattish, as per market research firm Nielsen. Discretionary categories such as hair and skin-care are impacted more than home care.

In this scenario, HUL could report 8% increase in revenues over the year-ago quarter. The company is expected to reduce ad-spends as compared to the year-ago quarter. The company has implemented price hikes which could restrict contraction in EBITDA margin to 45 basis points on a year-on-year basis and ~140 basis points sequentially.

Consequently, PAT growth could be muted at 1.4% over the year-ago quarter.

Important management insights to watch out for:
·         Outlook on demand across all segments and markets
·         Trends in input cost inflation, pricing action planned and margin levers
 

Rs Million	March 2022 estimates	YoY change
Revenue	131,989	8.0%
EBITDA	32,270	6.0%
Profit After Tax	22,067	1.4%

Source: IIFL Research