HUL net may rise 7% on improving demand | Economic Times

ET Intelligence Group: FMCG bellwether Hindustan Unilever (HUL), which is due to announce its September-quarter earnings on Tuesday, is expected to post a 10% increase in revenue at Rs 12,672 crore, with net profit rising 7% to Rs 2,114 crore.Volume growth is expected to be in high single digits on the back of healthy demand and low-base effect. Speedy vaccinations and a pickup in economic activities have helped buttress consumer demand, paced by purchases in rural areas. This is likely to help HUL improve the performance of its home and personal care segments, which were adversely affected due to lockdowns. Wellness-driven consumption is likely to continue to boost revenues of the company's nutrition portfolio acquired from GlaxoSmithKline. 87125660Operating margins are likely to contract to around 23% - under pressure from high raw material prices like palm oil, tea, and crude oil derivatives. Raw material costs make up about half the company's revenue.Management commentary on the intensity of input cost inflation, impact of festive demand on consumption, outlook on rural demand, strategy on product pricing and traction of ecommerce sales would be important monitorables for the Street.