Hindustan Unilever Q4 Results FY2023 Preview: What to Expect?

On April 27, Hindustan Unilever will announce its March quarter financial results (Q4FY23). 

In Q3FY23, Hindustan Unilever reported Total sales at Rs. 15,343 crores. Profit after tax for the quarter at Rs. 2,481 crores

Market Expectations from Hindustan Unilever’s Quarterly Results:

Zee Business research predicts that HUL will report a stand-alone net profit of Rs 2537 crore for the quarter ended March 2023, an increase of 9% from the same period last year.  According to estimates, the FMCG giant's revenue increased by 14% to Rs 15280 crore from the same time last year. Along with the results, the HUL board is probably going to declare a dividend for its investors.

HUL is expected to report volume growth of 5% over the prior quarter, in line with what the company reported in the prior quarter, according to analysts at IIFL Securities. 12.5% overall sales growth would indicate a 7% increase in prices.

The EBITDA margin at HUL could decrease by 89 basis points while EBITDA expands by 8%. In Q4 of last year, the company's EPS might increase by 11% from the prior quarter.

HUL's profit after tax, or PAT, is predicted by analysts at IIFL Securities to increase by 11.4% from the same quarter last year. 

Amisha Vora, CMD of Prabhudas Lilladher, claims that for FY24, the margin will be affected by about 0.52 basis points (bps). And when the full effects of this royalty increase are felt in FY25, the margin will be impacted by 0.70-0.72 bps.

Increased advertising and promotion spending is likely to use some of the potential 150-180 basis point improvement in gross margin.

On the volume front, the market expects HUL to report volume growth of between 5 and 6 percent on an annual basis.

The key will be management commentary on the demand environment, the slowdown in inflation, the outlook for acquisitions, and changes in leadership.

In addition, price reductions are probably going to help the soap industry's volume increase.

HUL stated during the quarter that the royalties it pays to parent Unilever Plc will rise by 80 basis points gradually over the following three years. Since February of this year, this has increased by 45 basis points. This is the parent company's first such increase in ten years. According to some experts, additional royalty payments will leave shareholders with less cash, which may be unfair to minority shareholders.

According to Nirmal Bang, Hindustan Unilever will report a net profit of Rs. 2,683.2 crore, up 17.5% on a year-over-year basis and 4% on a quarterly basis.

According to Nirmal Bang, Net Sales will rise by 13.8 percent Y-o-Y (up 0.6 percent Q-o-Q) to Rs. 15,321.8 crores. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is anticipated to increase by 13.3 percent year over year (up 3.9 percent quarter over quarter) to Rs. 3,675.5 crores.