HUL Q4 results: Standalone PAT rises 8.5% to Rs 2,327 cr, final dividend declared

India's largest consumer goods maker Hindustan Unilever Ltd (HUL) posted 8.5 per cent year-on-year rise in standalone net profit at Rs 2,327 crore in the quarter ended 31 March, 2022. The Indian unit of British consumer goods giant Unilever, had posted a net profit of Rs 2,143 crore in the year-ago period. 

Sequentially, the profit increased 4 per cent from Rs 2,243 crore December quarter.

The company's revenue from operations rose 10.4 per cent to Rs 13,190 crore as compared to Rs 11,947 crore in the corresponding quarter last fiscal, it said in a regulatory filing.

"In the context of unprecedented inflation, we continue to manage our business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of Net Revenue Management. We continue to invest competitively behind our brands," HUL stated.

HUL's EBITDA, or earnings before interest, taxes, depreciation, and amortization margin at 24.6% remained healthy despite very high inflationary headwinds, it added.

Further, HUL also stated that its board has recommended a final dividend of Rs 19 for the financial year ended 31 March,
2022, subject to approval of shareholders at the AGM. Together with interim dividend of Rs 15 per share, the total dividend for the year amounts to Rs 34 per share.

During the quarter, it added that the company's turnover grew 10 per cent with flat underlying volume growth. "We continued to grow significantly ahead of the market, gaining value and volume market shares," it added.

Sector-wise break-up 

Home Care sector grew 24 per cent on strong performance in fabric wash and household care. Both categories grew
in strong double-digits with all parts of the portfolio performing well. 
"Calibrated price increases were taken across Fabric Wash and Household Care portfolios to partly offset the significant inflation in input costs," HUL stated. 

Beauty & Personal Care grew at 4 per cent. Skin Cleansing delivered double digit growth driven by pricing and led by
strong performance in ‘Lux’, ‘Dove’ and ‘Pears’. Hair Care continued its strong competitive performance in the quarter with all brands gaining shares. 

However, skin care and colour cosmetics had a muted quarter with the third COVID-19 and high inflation impacting discretionary consumption, it noted. During the quarter, New Dove Hair Therapy, Sunsilk Onion and Jojoba Oil Shampoo, Lifebuoy’s ‘Powder to Liquid’ Handwash and Lakme’s new range of eye make-up were launched.

Foods & Refreshment was up 5 per cent on a "very high prior year comparator, driven by solid performance in beverages, foods, and ice-cream." Tea continued its robust performance and grew competitively on an exceptionally high base. Foods grew in double digit led by Ketchup, jams and soups. 

Commenting on the results, Sanjiv Mehta, CEO and Managing Director said, ‘In challenging circumstances, we have grown competitively and protected our business model by maintaining margins in a healthy range. I am also pleased that we have become a Rs. 50,000 crore turnover company in this fiscal."

"Our consistent performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business. While there are near term concerns around significant inflation and slowing market growth, we are confident of the medium to long term prospects of the Indian FMCG sector and remain focused on delivering a Consistent, Competitive, Profitable and Responsible growth," he added.

Shares of HUL on Wednesday closed 1.18 per cent lower at Rs 2,144.25 apiece on BSE.