FMCG giant Hindustan Unilever saw its stock price take a small dip following the release of its fourth quarter financial results. The company reported a modest year-on-year decline in net profit for the three months ended March 2024 due to factors such as falling commodity prices.
HUL's shares ended the day 1.94% lower on the BSE, closing at Rs 2215.25. On the NSE, the stock price fell 1.99% to end at Rs 2215.10. This minor decrease came after HUL announced a 1.53% year-on-year fall in consolidated net profit for the January-March period to Rs 2561 crore.
Total sales for the world's largest consumer goods firm by market value were nearly unchanged from the prior year at Rs 15,013 crore. While total expenses rose marginally by 1.15% to Rs 12,100 crore.
Analysts said deflation in key input costs like palm oil aided margins in the quarter. However, a softer macroeconomic environment impacted overall volumes and revenue growth. The results were in line with street expectations of mild profit decline owing to inflation headwinds earlier in the fiscal.
HUL continues to hold a dominant position in India's FMCG sector through its portfolio of trusted brands. Investor focus will now shift to strategies to boost volume recovery and deal with tightening consumer wallets in the current inflationary conditions. The company is well positioned through its market leadership, although near-term outlook remains uncertain.
