Hindustan Unilever Ltd.'s growth trajectory is poised to see an uptick from current quarter of the fiscal year, given the improvement in the macro-economic scenario, combined with internal factors, said CEO Rohit Jawa, in a post-earnings analyst call.
In the investor presentation for the quarter as well, the FMCG giant expects earnings growth to gradually improve during the year led out of portfolio transformation and improving macroconditions, with H1FY2026 to be better than H2FY2025.
"We know that there are no new headwinds that we have to deal with this point in time that we're aware of. So that's good news, given the climate consumption has been subdued. It's good to be in a space where no new headwinds should be dealt with," stated Jawa.
Further, the continued good agriculture outcome that will support rural growth. There have been good kharif and rabi crops, and there's an expectation of a normal monsoon for this year. "So that's one area which we are encouraged on," said the HUL chief.
Additionally, the tax relief outlined in the Union Budget 2025 will support growth urban and beyond. Thirdly, food inflation has improved, and is much lower, which should spur consumption. There is also strong deflation in large commodities like crude oil. It will also augur well in terms of overall consumption, Jawa noted.
Detailing the reasons behind the positive growth guidance, Jawa stated the internal factors within the FMCG bellwether have also given reason for optimism. "This is the job that we have done with our portfolio, and the confidence we have in portfolio transformation, will augur well for growth."
"Taking a branch into more segments, launching new brands, breaking brands from the stable of Unilever or doing Bolt-on acquisitions. All four put together we have a stronger portfolio leaning in from June quarter onwards," he added. "We have also dialed up on a portfolio innovation intensity that will mean investment, but that will also mean more positive impact in terms of growth trajectory."
According to Jawa, around 80 percent of HUL's business is superior on the brand recognition front. Combined, the chief believes there is a a very clear case for investment, given internal and external components. "We believe that June quarter, September quarter should, should be better than what last couple of quarters have been."
Also Read | New Unilever chief bullish on HUL, sees India as key market, says CEO Rohit Jawa
For the quarter ended March, HUL's standalone profit came in at Rs 2,493 crore, up 3.7 percent compared to the same quarter last year. Hindustan Unilever's standalone revenue rose 2.1 per cent to Rs 15,000 crore.
At close HUL shares were quoting Rs 2,324, lower by 4.1 percent on the NSE to emerge as the top loser on the Nifty 50 index.
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