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Hindustan Unilever Q2 results today: Here’s what to expect
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Hindustan Unilever Q2 results today: Here’s what to expect
Oct 11, 2018 11:56 PM

FMCG major, Hindustan Unilever Ltd (HUL), is scheduled to release its financial results on Friday for the quarter ended on September 2018.

The street expects 8-9 percent volume growth, 3-4 percent price growth and 100-150 basis points (bps) EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin expansion.

One basis point is a hundredth of a percentage point.

CNBC-TV18’s poll expects revenue growth of 12 percent, volume growth of 8-9 percent and price growth to the tune of 3-4 percent. The company may report 14 percent year-on-year (YoY) rise in net profit at Rs 1,452 crore.

EBITDA is estimated to jump 20 percent, to Rs 2,020 crore and the margin expansion of close to 150 bps, 21.7 percent is on the cards.

Volume growth will be important primarily as for the last three quarters, we have seen a double-digit volume growth of 11-12 percent. Now, with the base growing a little more, we had 4 percent in the base caught up, where the volume growth is expected to slow down.

Important to watch for commentary on competition in the home care space. Revenue growth will be led by new launches in the Naturals portfolio. Important to watch for commentary in the home care space after Procter & Gamble's Tide and Aerial have ramped up competition during the quarter.

With rising input cost and increasing competition, it's important to know what the management’s commentary on that would be.

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