🧾 Introduction
Hindustan Unilever Limited (HUL), a leading FMCG multinational in India, announced its financial results for the quarter ending March 2025 (Q4 FY25). While the company posted stable revenues and operating margins, it reported a significant decline in net profit due to a drop in other income and higher expenses. The results reflect a mixed bag of performance, with volume growth and operational efficiency being partially offset by one-time impacts and cost pressures.
💡 Financial Highlights
- Revenue (Sales): ₹15,670 Cr, down marginally from ₹15,818 Cr in Q3 FY25
- Operating Profit: ₹3,618 Cr, decreased from ₹3,695 Cr in Q3 FY25
- Operating Profit Margin: 23% (flat QoQ, YoY)
- Net Profit: ₹2,475 Cr, down 17% YoY and down from ₹2,989 Cr QoQ
- Other Income: ₹171 Cr, declined significantly from ₹740 Cr in Q3 FY25
- EPS: ₹10.49 vs ₹12.70 in Q3 FY25
💰 Dividend Announcement
HUL has not announced any final dividend in its Q4 FY25 results update. The company may consider dividend decisions in upcoming meetings or the Annual General Meeting (AGM).
📈 Key Financials Metrics (₹ in Cr)
| Metric | Q4 FY25 (Mar 2025) | Q3 FY25 (Dec 2024) | Q4 FY24 (Mar 2024) | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Sales | 15,670 | 15,818 | 15,210 | 🔻 -1.0% | 🔼 +3.0% |
| Expenses | 12,052 | 12,123 | 11,675 | 🔻 -0.6% | 🔼 +3.2% |
| Operating Profit | 3,618 | 3,695 | 3,535 | 🔻 -2.1% | 🔼 +2.3% |
| Other Income | 171 | 740 | 309 | 🔻 -76.9% | 🔻 -44.7% |
| PBT | 3,362 | 3,982 | 3,419 | 🔻 -15.6% | 🔻 -1.7% |
| Net Profit | 2,475 | 2,989 | 2,561 | 🔻 -17.2% | 🔻 -3.4% |
📊 Key Financial Ratios
| Ratio | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ Trend | YoY Trend |
|---|---|---|---|---|---|
| Operating Margin (%) | 23% | 23% | 23% | ➖ Stable | ➖ Stable |
| Net Profit Margin (%) | 15.80% | 18.90% | 16.80% | 🔻 Lower | 🔻 Lower |
| EPS (in ₹) | 10.49 | 12.7 | 10.89 | 🔻 Lower | 🔻 Lower |
📊 Peer Comparison
| Company | CMP (₹) | Market Cap (₹ Cr) | P/E | P/B | ROE (%) | ROCE (%) | 52W High (₹) | 52W Low (₹) |
|---|---|---|---|---|---|---|---|---|
| HUL | 2369.95 | 5,56,841.35 | 53.47 | 11.29 | 20.72 | 27.85 | 3035 | 2136 |
| Colgate-Palmolive | 2687.65 | 73,100.22 | 49.98 | 44.26 | 74.52 | 96.8 | 3893 | 2311.5 |
| P&G Hygiene | 14506.3 | 47,088.54 | 65.79 | 49.79 | 78.92 | 112.44 | 17747.85 | 12105.6 |
| Gillette India | 8864 | 28,887.79 | 60.93 | 26.64 | 42.49 | 58.91 | 10699 | 6710.5 |
🚀 Strategic Developments
- Management Commentary: The company continues to focus on volume-led growth and cost optimization despite macroeconomic headwinds.
- Operational KPI Highlights:
- No specific KPIs (e.g., volume, ARPU) disclosed
- Continued investments in brand-building and distribution
- CapEx: Not specified in the disclosed materials
✅ Positives & ❌ Negatives
✅ Positives This Quarter:
- Stable revenue and operating margins despite macro challenges
- Continued focus on cost efficiency and supply chain management
- Strong presence and leadership in core personal care and home care categories
❌ Negatives / Challenges This Quarter:
- Net profit declined 17% YoY, mainly due to sharp drop in other income
- Limited growth in sales and profits QoQ
- No dividend declared this quarter
- EPS contracted both YoY and QoQ
- Market may react cautiously to weak bottom-line performance
📉 Market Reaction & Street View
- Stock Reaction: HUL stock traded flat to slightly negative post-results amid muted earnings.
- Investor Sentiment: Cautious optimism due to margin stability, though weak net profit has capped enthusiasm.
- Brokerage Commentary:
- Motilal Oswal: “Maintain Neutral. Target Price ₹2,500. Net profit miss dampens short-term outlook.”
- ICICI Securities: “Expect recovery in H2 FY26; maintain Buy. Target ₹2,650.”
- JP Morgan: “Operating performance stable but PAT miss concerning. Downgrade to Hold.”
🔮 Final Outlook
HUL’s Q4 FY25 performance showcases resilience in operating margins and sales amidst a challenging macro backdrop. However, the sharp dip in net profit due to reduced other income and flat volume growth raises short-term concerns. The company remains a strong FMCG player with brand equity and execution capabilities, though near-term performance may remain under pressure.
Long-Term View: Positive, with structural tailwinds in consumption, rural recovery, and brand premiumization.
🔗 External Links
For detailed financials and official updates, visit: HUL Official Website
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.