HUL Q1 Review - Waiting For Margin Headwinds To Recede: Dolat Capital
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Dolat Capital Report
Hindustan Unilever Ltd.'s revenues came in line as the core business registered 12% sales growth with 9% underlying volume growth.
Beauty and personal care business reported 13.2% growth on a favorable base of 12% decline.
The segment posted flat Ebit despite raw material inflation. Increase in raw material and delayed and restrictive price pass on resulted in 140 basis points contraction in gross margin.
Further, increased brand investments hampered HUL's Ebitda margins.
We have reduced our FY22/FY23E earnings per share estimates to Rs 38.3/43.9 to factor in Q1 performance.
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