Tad bit disappointed with the revenue growth of HUL: Kautsab Pawaskar

In a chat with ET Now, Kautsab Pawaskar, FMCG Analyst, Sharekhan shares his views on HUL. Excerpts


ET Now: Are you happy with the margin performance that HUL has managed to put up?

Kautsab Pawaskar: The gross margins declined by around 160 bps. Operating margins improved by just around 40 bps. If we consider the gross margins, I am bit disappointed. I am expecting gross margins to improve in the coming quarters. We will see the benefits of lowering of commodity prices, that is palm oil, crude derivatives. The benefits of those lowering of raw material prices would start coming in from quarter three. If you consider the volume growth, volume growth was 5 per cent, which is in line with what we and street were expecting. I was expecting around 15 per cent revenue growth. Revenue growth came at around just 11 per cent.