InvestorQ : How did Hindustan lever manage such a sharp 19% growth in profits even with this size?
Anu Biswas made post

How did Hindustan lever manage such a sharp 19% growth in profits even with this size?

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Ria Jain answered.
2 months ago
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In reality, Hindustan Unilever growth numbers were lower than expectations but we need not give too much credence to these estimates because they are normally wrong. Most estimates try to justify how the performance fell short of estimates rather than admitting that estimates were wrong in the first place. We shall ignore these estimates for now.

Hindustan Unilever reported Q3 PAT growing at the rate of 18.9% to Rs.1,921 crore in the Dec-20 quarter. What was a lot more encouraging was that EBITDA grew at 16.7% and the EBITDA margins expanded to 24%. This is one of the highest levels seen by Hindustan Unilever in the last few quarters and tells a positive story.

Total revenues on a standalone basis were up 20.48% at Rs.11,682 crore. The management consciously adopted strategies like better mobility, innovations in delivery and market investments. There was a sharp recovery in the Nutrition business as well as in the discretionary consumption segments. Rural demand may have done its job and now it is up to urban demand to follow suit for HUL.

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