Shares of FMCG major Hindustan Unilever Ltd (HUL) tanked over 3 per cent on Friday, dragging the key indices, after the company’s first quarter results were below estimates.
HUL’s shares slipped 3.1 per cent in the intraday session to touch a low of Rs 2,620 on BSE. At the time of writing, the FMCG company’s were trading at Rs 2622.10 on BSE, while BSE benchmark Sensex was down 857.75 points, or 1.27 per cent at 66,714.15, and broader NSE Nifty50 slipped 209.30 points, or 1.05 per cent to 19,769.85.
Hindustan Unilever reported an eight per cent year-on-year rise in profit after tax for the June quarter at Rs 2,472 crore, against Rs 2,289 crore in the same period a year ago.
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HUL’s total sales came at Rs 14,931 crore, up 7 per cent in Q1FY24, as against Rs 14,016 crore a year ago.
“FMCG markets are recovering gradually although the operating environment remains challenging. In this context we have delivered a resilient and competitive performance whilst stepping up our EBITDA margin,” said Rohit Jawa, CEO and Managing Director.
He added, “I am confident of the medium to long term prospects of the Indian FMCG sector and HUL’s ability to deliver a consistent, competitive, profitable and responsible growth.”