In a significant update from the fast-moving consumer goods (FMCG) sector, Hindustan Unilever Limited (HUL) has reported a 3.7% decrease in its consolidated net profit for the fourth quarter of fiscal year 2025, amounting to ₹2,464 crore. This decline comes as a surprise, given that the company had posted a profit of ₹2,558 crore during the same period last year. A sequential comparison reveals an even sharper drop of 17.4%.
Financial Overview of HUL’s Q4 FY25
HUL’s total consolidated income for the quarter ending March 2025 showed a year-on-year increase, reaching ₹15,979 crore, up from ₹15,441 crore in Q4 FY24, reflecting a growth of 3.5%. However, the revenue remained relatively stable when compared to the previous quarter.
- EBITDA experienced a slight uptick, reaching ₹3,466 crore, compared to ₹3,435 crore in the prior year.
- Despite this rise, the EBITDA margin narrowed by 30 basis points, settling at 23.1%.
Dividend Announcement
In an encouraging move for shareholders, HUL’s board has proposed a final dividend of ₹24 per share for the fiscal year ending March 31, 2025. This follows an interim dividend of ₹19 and a special dividend of ₹10 issued on November 21, 2024. Consequently, the total dividend for the fiscal year stands at ₹53 per equity share.
Segment Performance Breakdown
The performance varied across different segments:
- Home Care: Revenue climbed to ₹5,818 crore, up from ₹5,715 crore in Q4 FY24.
- Beauty & Wellbeing: This segment saw growth to ₹3,113 crore, rising from ₹2,987 crore.
- Personal Care: Generated ₹2,124 crore, slightly higher than ₹2,063 crore.
- Foods: Experienced a minor decline, earning ₹3,886 crore, down from ₹3,911 crore in the prior year.
- Others: This category, which includes exports and consignments, rose to ₹263 crore from ₹181 crore.
Strategic Insights from HUL’s Leadership
Rohit Jawa, CEO and Managing Director of HUL, noted that the company achieved a turnover exceeding ₹60,000 crore in FY25, with an underlying sales growth of 2% and a 5% growth in earnings per share (EPS). He mentioned, "While we experienced mid-single-digit growth in volume tonnage, it was partially balanced by a negative mix. Our performance has solidified our market leadership, and we have made strides in portfolio transformation with innovations and strategic acquisitions."
Looking forward, HUL anticipates gradual improvement in demand conditions in the upcoming fiscal year, expressing confidence in their strategic approach to unlocking aspirations and reinforcing their competitive edge.
HUL Share Price Trends
In the stock market, HUL’s shares experienced a 2% decline following an initial increase during the morning session. According to Rajesh Bhosale, an analyst at Angel One, the shares faced resistance around the ₹2,450 mark, which aligns with key technical indicators. Immediate support is observed at ₹2,300, highlighting potential levels to watch in the coming days.
As HUL navigates these challenges and opportunities, stakeholders remain focused on the company’s strategic plans to foster growth and sustain its leadership in the FMCG landscape.
