Stock Fundamentals

Hindustan Unilever: Weak show

Parvatha Vardhini C | Updated on January 20, 2018 Published on May 15, 2016

14HUL_c.eps



Hindustan Unilever put up a weak show in the March 2016 quarter, with net sales growing just 3.4 per cent year-on-year to ₹7,809 crore and adjusted net profit inching up 7.1 per cent to ₹1,090 crore.

At 4 per cent, the overall volume growth was the slowest in five quarters. Price cuts to boost demand, especially in its soaps and detergents segment (47 per cent of revenue), also pulled down the top-line growth.

What helped profit look up a bit was lower input costs. Thanks to this, operating margin came in at 18.5 per cent compared with 17.1 per cent a year ago. It also helped push up ad spends to 14 per cent of sales compared with 13.5 per cent a year ago.

With input prices beginning to firm up, the leeway on this front may reduce in the coming quarters.

At this juncture, a pick up in rural demand could be the best thing that can happen to the company.

Published on May 15, 2016

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.