HUL and Nestle Q4 Earnings Unveiled: 4 Crucial Factors to Monitor for Impactful Results

As the earnings season unfolds, two prominent players in India’s fast-moving consumer goods (FMCG) sector, Hindustan Unilever (HUL) and Nestle India, are poised to reveal their financial outcomes for the fourth quarter of FY25 on Thursday, April 24. With a resurgence in rural demand and the recent Union Budget aimed at enhancing consumer spending through tax cuts, stakeholders are eager to see if these favorable economic conditions will translate into robust earnings.

Key Focus Areas for Investors

When it comes to earnings reports, several crucial elements will capture the attention of investors as HUL and Nestle prepare to share their financial data. Here’s what to watch closely:

Anticipated Dividend Announcements

One of the primary points of interest will be the declaration of dividends. Both HUL and Nestle India have consistently rewarded their shareholders with reliable payouts. In their scheduled board meetings today, these companies will deliberate on proposing a final dividend for the 2024-25 financial year. If the boards approve these dividends, they will still require shareholder approval during their upcoming Annual General Meetings.

Quick Recap of Q3 Performance

Before diving into the latest quarterly figures, it’s insightful to reflect on the previous quarter’s results. In Q3 FY25, HUL experienced a 1.6% increase in revenue, totaling Rs 15,818 crore, while its net profit surged by 18.9% year-on-year to reach Rs 2,984 crore. However, EBITDA showed a modest growth of 0.8%, amounting to Rs 3,695 crore, and the margins slightly dipped to 23.4% from 23.5% in the same quarter last year.

On the other hand, Nestle India reported a 5% rise in net profits for Q3, coming in at Rs 688 crore, with operational revenue climbing nearly 4% to Rs 4,779.7 crore. Domestic sales hit Rs 4,566 crore, reflecting a year-on-year growth of 3.26%. Despite facing cost pressures, Nestle successfully maintained stability across popular products, including Maggi, Milkybar, and Nescafe.

Earnings Release and Insider Trading Policies

Both Hindustan Unilever and Nestle India are set to announce their earnings today, April 24. HUL has planned an earnings call at 4 PM IST, during which management will discuss financial highlights and key insights. Nestle India has not yet disclosed details about its earnings call, but updates are expected throughout the day.

In line with regulatory requirements, both companies have enacted trading window closures for insiders. HUL’s trading window has been shut since March 16 and will reopen 48 hours after the results are made public. Meanwhile, Nestle India’s trading window has been closed since April 1 and will remain so until April 26.

Stock Performance Overview

As for the stock market, HUL has shown a mixed performance across various time frames. Over the past five trading sessions, its stock increased by 2% and has yielded a 7% return in the last month. However, on a six-month basis, the stock has declined by 3%, while it is up by 7% year-over-year. Year-to-date, HUL’s stock has provided a 4% return, boasting a market capitalization of Rs 5.69 lakh crore. The stock’s 52-week high is Rs 3,035, with a low of Rs 2,136.

For Nestle India, the stock has seen a 2% return over the last five sessions, but it dropped by 2% in the past month. In a six-month period, the share price has appreciated by 3%, while it has witnessed a 7% decline year-over-year. However, year-to-date, Nestle India’s stock has shown a remarkable return of 17%, with a 52-week high of Rs 98.62 and a low of Rs 72.82.