HUL's volume growth disappointing: Nischal Maheshwari

In a chat with ET Now, Nischal Maheshwari, EVP Research, Edelweiss Securities Ltd., shares his views on HUL.

ET NOW: What is your initial take on HUL numbers?

Nischal Maheshwari: On the volume side, I am disappointed actually and profitability, yes it is higher but that could be because of curtailment of profit so we need to see the numbers, actually the detail numbers so I do not see exciting results out here actually. Volume is pretty disappointing in this quarter.

ET Now: Is it terribly disappointing, a 3% volume growth?

Nischal Maheshwari: Yes, we were expecting close to around 4-4.5% kind of volume growth coming in so at least sustaining last quarters number. Profitability is largely what we have seen in case of other FMCG companies,largely because of cut in the advertisement expenses and that is where you get these profitability coming through basically. But we need to see the details about that but volume is very disappointing.

ET Now: Is this trend in volume growth something that you would look at or would you look at the quarterly numbers for HUL?

Nischal Maheshwari: Quarterly numbers are the numbers basically which the companies achieve in the last quarter but I want to look at the trend going forward, I would look at the volumes actually. Till the volumes turnaround, I would not be actually very positive on the stock.