HUL Q3 Results: The consumer goods giant reported healthy quarterly earnings as PAT (profit after tax) surged by over 19%
HUL Q3: The consumer goods giant impressed investors with its Q3 results as the profit figure stood at Rs 3,001 Crore, up by 19% YoY (year-on-year). However, the robust surge in profit was mainly driven by HUL's recent divestment of 'Pureit' business.
"Profit After Tax (PAT) at Rs. 3,001 Crores grew 19% year-on-year majorly on account of profit from the divestment of ‘Pureit’ business while Profit After tax before exceptional items (PAT bei) was flat," the company stated in its investor presentation.
The company witnessed a 1.61% rise in its revenue from operations figure, which stood at Rs 15,818 crore during Q3.
HUL reported an underlying sales growth of 2% alongside a flat volume growth. At the same time, Ebitda margins remained healthy at 23.5%. While the home care and B&W (Beauty and well-being) segment gained momentum with modest growth levels, revenue in the personal care segment declined. The food segment also delivered a flat performance with "mid-single digit price growth offset by decline in volume."
"FMCG demand trends remained subdued with continued moderation in urban growth while rural sustained its gradual recovery. In this operating context, we delivered competitive growth by driving unmissable brand superiority, investing behind brands and capabilities whilst maintaining healthy margins," said Rohit Jawa, Ceo and Managing Director of HUL.
The demerger of HUL's ice cream business has been in the news for the better part of last year. The FMCG giant announced that the share entitlement ratio will be 1:1, which means for every HUL share held, shareholders will receive one KWIL (Kwality Wall's India Ltd.)share as per the demerger terms.
"KWIL will be a leading listed ice cream company in India, with an experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential," the FMCG giant said in a release.
Upon demerger and listing of KWIL, the entire shareholding of KWIL will be held directly by shareholders of HUL, the release further read.
The shares of the FMCG giant remained under pressure last year and are currently trading at Rs 2342 price level, down by over 22% from its 52-week-high.