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HUL Q2 Review - Inflation Continues To Cast Shadow: IDBI Capital

HUL Q2 Review - Inflation Continues To Cast Shadow: IDBI Capital

<div class="paragraphs"><p>Bottles of Hindustan Unilever Ltd. Lifebuoy hand sanitizers at a store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Bottles of Hindustan Unilever Ltd. Lifebuoy hand sanitizers at a store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Hindustan Unilever Ltd.'s Q2 FY22 result was below our estimates. Volume growth at 4% YoY (on a base of 1%) was soft.

Inflationary headwinds continue to be stronger than expected. Price hikes to the tune of 5% in Q1 FY22 followed by 7% in Q2 FY22 are steep.

However, strong recovery in out-of-home and discretionary segments are encouraging.

Integration with GlaxoSmithKline Consumer Healthcare Ltd. reached 80% level (versus 50% in Q1 FY22).

HUL continues to gain market share in more than 75% of the business. Inflation in palm oil, crude oil, polyethylene and ocean freight continues to rise.

Management expects cost pressures to stay for at least one to two quarter.

Click on the attachment to read the full report:

IDBI Capital HUL Q2FY22 Result Update.pdf

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