Hindustan Unilever is all set to declare it’s June Quarter result today at 5.45 p.m as per the notification on its website. The profit growth is expected to remain flattish due to lack of growth triggers in the previous quarter. The share was trading up by 0.6%, at Rs. 1,153 at the start of the day, and had seen a spike to Rs.1,169 during the day as a run up to the ensuing results. While the consensus outlook is that the results will be lukewarm ( in terms of growth), it is intriguing to note the rise in the share price! We bring to you 5 key areas to look out for in the results.
1. Segment Wise Growth
In the March Quarter, the segment-wise growth of HUL had been stupendous, with Home Care, Personal Care and Domestic Consumer segments growing at 8%. The refreshments segment had grown at 11%! The home care segment which constitutes nearly 30% of the revenue is expected to post 1-2% revenue growth, according to the analysts polled by CNBC TV 18.
2.. The Topline growth
Revenue is seen rising 2.7 percent year-on-year to Rs 9,040 crore while operating profit may increase 4 percent to Rs 1,700 crore and margin may expand 20 basis points to 18.8 percent compared with year-ago quarter, as per the earlier mentioned analysts polled by CNBC TV 18.
3. Any change in strategy post GST
In the presentation for the previous quarter ( Jan- Mar ’17) HUL had looked to pass on the benefits of tax savings to it’s customers! The strategy to- ‘Focus on volume driven growth and improvement in operating margin’ remained unchanged!
4. Shareholder value
The Analysts feel any announcement of bonus, special dividend or buyback may enhance shareholder value as Unilever PLC had said that they were looking at various ways to expedite enhancement of shareholder value.
5. The Share Price @ 1,166.
During the last week, Yogesh Mehta of Motilal Oswal, told CNBC TV 18, “We are looking at Hindustan Unilever (HUL) as a buy long call. Currently it is quoting at Rs 1,130, Rs 1,123 was the previous lifetime high which it has crossed. Now we are looking at Rs 1,165-1,170 as a price target, keeping Rs 1,115-1,116 as a stop loss.” The stock has already run up to this price target.