21 July 2023, Mumbai: Shares of Hindustan Unilever witnessed a significant decline of nearly 4% on Friday, resulting in the erosion of Rs 23,155.22 crore from its market valuation. The company’s first-quarter earnings report failed to cheer investors, causing its stock to fall by 3.65% on the BSE, settling at Rs 2,603.80. During the day, the stock plunged 4% to Rs 2,592.20 on the BSE.
Market Valuation of Hindustan Unilever Takes a Hit, Losing Rs 23,155.22 Crore
On the NSE, Hindustan Unilever’s stock declined by 3.67%, ending at Rs 2,604. This decline in stock price led to a substantial reduction in the company’s market valuation, falling by Rs 23,155.22 crore to Rs 6,11,786.57 crore.
Hindustan Unilever Reports 6.9% Rise in Q1 Consolidated Profit, Riding on FMCG Industry Recovery
Hindustan Unilever reported a consolidated profit after tax of Rs 2,556 crore for the June quarter of 2023-24, marking a 6.9% rise. The company’s earnings were boosted by a gradual recovery in the FMCG industry, despite operating in a challenging environment. In the same quarter last fiscal, the company had posted a consolidated net profit of Rs 2,391 crore.
Total Income in Q1 Reaches Rs 15,679 Crore, Marking Growth Despite Challenging Environment
Total income for the first quarter stood at Rs 15,679 crore, compared to Rs 14,757 crore in the corresponding period last fiscal year. However, total expenses also increased, reaching Rs 12,167 crore as compared to Rs 11,531 crore in the same quarter a year ago.
HUL’s Q1 Performance: Resilient and Competitive Amidst Persistently Challenging FMCG Markets
HUL’s CEO and Managing Director, Rohit Jawa, acknowledged the gradual recovery in FMCG markets but also noted the persistently challenging operating environment. Despite the headwinds, the company delivered a resilient and competitive performance while making efforts to improve its EBITDA margin.