Hindustan Unilever Q3 PAT seen up 8% at Rs 871 crore; stock down

MUMBAI: FMCG major Hindustan Unilever will be announcing its quarterly results later in the day. According to an ET Now poll, the company is likely to report a net profit of Rs 944 crore, up 8 per cent, as compared to a net profit of Rs 871 crore in the corresponding quarter a year ago.

Net sales are seen up 12 per cent at Rs 7,198 crore as against Rs 6,433 crore in the same quarter last fiscal year.

EBIDTA is seen up 8 per cent at Rs 1,178 crore as against Rs 1,089 crore; while EBIDTA margins may dip slightly to 16.36 per cent versus 16.92 per cent.

Analysts are expecting top line growth to be led by volumes and prices. They see 10 per cent revenue growth in domestic FMCG business. Volume growth is seen to be in the range of 4-5 per cent.

Higher tax rate and lower other operating income is likely to restrict PAT growth. Margins could contract on the back of high ad expenses in oral care segment. Margins of personal products are expected to contract and the delay in winter season is likely to impact skincare segment.

Factors to watch out for:

Comments on volume growth

Consumer demand environment

Comments F&L/skincare business

At 10:50 a.m.; the stock was at Rs 559.50, down 1.13 per cent, on the BSE. It touched a high of Rs 565.20 and a low of Rs 557 in trade today.