HUL profit falls 2.4% in Q2, misses estimates

Growth moderates in urban areas, rural India sees gradual pickup

- Sharleen D'Souza

Hindustan Unilever (HUL), one of the country's largest consumer companies, reported that its 2024-25 (FY25) July-September quarter (Q2) numbers missed analysts' expectations.

In its outlook, the management said it expected demand to remain stable. This comes on the back of the company witnessing moderating growth in urban areas and a gradual recovery in rural areas in Q2FY25. HUL's net profit was ₹2,591 crore in the quarter ended September, down 2.4 per cent, while its underlying volume growth stood at 3 per cent in the quarter.

The maker of Lux soaps said in its earnings release that in the base quarter, there was a one-off indirect tax credit from a favourable resolution of past litigation, which benefited both the top line and bottom line in the beauty and well-being segment. Excluding this, the profit after tax before the growth of exceptional items is at 2 per cent.

According to Bloomberg estimates, analysts had estimated net profit at ₹2,693 crore and revenue at ₹15,753.1 crore. The fast-moving consumer goods (FMCG) major's revenue was higher by 1.9 per cent year-on-year (Y-o-Y) at ₹15,926 crore.