HUL's Shares Plummet as Profits Dip Amid Challenging Margins

Hindustan Unilever Ltd's shares dropped over 4% after reporting a 3.35% decline in net profit for Q4, ending March 31, 2025. Revenue from product sales increased slightly due to volume growth, but margins decreased. The home care segment saw minimal growth, hindered by price cuts to pass on savings.

Shares of Hindustan Unilever Ltd (HUL) fell sharply by over 4% on Thursday following the company's report of a decline in consolidated net profit by 3.35% in the March quarter. The profits dropped to Rs 2,475 crore, a fall from Rs 2,561 crore recorded in the same quarter the previous year.

Despite a slight increase in revenue driven by volume growth, with product sales reaching Rs 15,416 crore, the EBITDA margin declined by 30 basis points to 23.1%. The company's total expenses rose by 3.12% to Rs 12,478 crore, while total income climbed 3.48% to Rs 15,979 crore amid challenging market conditions.

Particularly notable was the minimal growth in the home care segment, which increased by only 1.85% to Rs 5,815 crore. This was largely due to price cuts aimed at passing commodity price benefits to consumers, thereby impacting profit margins.

(With inputs from agencies.)