Revenue from operations stood at Rs 14,928 crore in Q3 FY24 as against Rs 14,986 crore reported in the same period a year ago.

Hindustan Unilever (HUL) delivered underlying volume growth (UVG) of 2% in Q3 FY24, due to the impact of price reductions.

Profit after tax before exceptional items (PAT bei) was at Rs 2,541 crore in the third quarter of FY24, declining 2% from Rs 2,581 crore posted in Q3 FY23.

During the quarter, EBITDA was at Rs 3,540 crore from Rs 3,537 crore posted in Q3 FY24. EBITDA margin improved to 23.7% in Q3 FY24, up 10 bps as compared to 23.6% recorded in the corresponding quarter previous year.

HUL said that its Home Care and Beauty & Personal Care which constitutes about 75% of its business continues to see volume recovery and had mid-single digit UVG. Foods & refreshment, on the other hand, saw a low-single digit decline in UVG primarily due to pricing taken in the year to offset impact of higher commodity cost, it added.

The company’s Home Care business saw a marginal decline in revenue with mid-single digit UVG in the quarter. However, on a 2-year CAGR basis, the business delivered a strong double-digit growth of 14% with high single digit UVG. Fabric Wash volumes grew in mid-single digit YoY driven by outperformance in premium portfolio. Household care volumes grew in low single digit led by Dishwash.

Beauty & Personal Care revenue remained flat with mid-single digit UVG. Skin cleansing revenue declined due to the impact of price reductions taken to pass on the benefits of lower commodity costs to consumers. Market development actions in bodywash continue to yield good results. While delayed winter impacted Skin Care performance in the quarter, premium non-winter portfolio continued to do well, added the firm.

Hair Care delivered volume led double-digit growth with broad based performance across brands and future formats continuing to gain traction. Oral Care grew mid-single digit led by Closeup.

Foods & Refreshment revenue grew 1% during the period under review.

Gross margin and A&P investments increased 400 bps and 270 bps respectively versus December quarter FY22.HUL stated that it continues to manage its business dynamically by ensuring right price-value equation and investing competitively behind our brands and long-term capabilities.

In nine month ended December 2023, HUL's net profit rose 4.02% to Rs 7,708 crore on 3.15% increase in turnover to Rs 44,886 crore.

Rohit Jawa, CEO and managing director commented, ‘HUL has delivered another quarter of resilient performance with strong operating fundamentals amidst a challenging operating environment. Our focus on providing the right consumer value, excellence in execution, increased investments behind brands and capabilities, premiumisation and market development continues to serve us well.

Looking forward we expect gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery. In this context, our focus remains on driving competitive volume growth whilst stepping up investment behind our brands and long-term strategic priorities. We remain confident of the mid to long term potential of Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges.”

Hindustan Unilever is India's largest fast moving consumer goods company.

Shares of Hindustan Unilever slipped 3.05% to Rs 2,486.45 on the BSE.