Hindustan Unilever shares fall, worries over sales weigh

Written by Reuters | Mumbai | Updated: Apr 29 2014, 16:02pm hrs
Hindustan UnileverHindustan Unilever management is cautious in its outlook, pointing towards the slowdown that has put pressure on sales of some categories.
Shares of Hindustan Unilever fall 1.4 percent after the company's sales volume growth in the March quarter came in at 3 percent, lagging analyst estimates of 4-5 percent, dealers say.

Also read: Slowdown hits Hindustan Unilever, net up 11%

The company's sales growth stayed muted for the eighth straight quarter, hurt by a sluggish economy. India's largest consumer goods maker said it did not expect a demand recovery in the near-term.

Dealers expect Hindustan Unilever's margins to remain flat as input costs and royalty rates inch up.

Hindustan Unilever shares have gained 0.4 percent so far this year as of Monday's close, well below the 6.7 percent rise in the broader Nifty.