HUL Q3 Preview: Will GST transition dent profit, revenue growth for consumer goods major?
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Consumer goods major Hindustan Unilever Ltd (HUL) is expected to report a muted set of numbers for the third quarter, with revenue growth remaining modest despite some early signs of demand stabilisation. According to an average of six brokerages, revenue is likely to rise about 3% YoY, while adjusted PAT is seen declining around 3% YoY due to a transitional hit from the revamped GST regime. Brokerages including Centrum and Nuvama note that the first half of Q3 was impacted by GST rate rationalisation, which affected roughly 40% of HUL's portfolio. However, channel normalisation after November 10 and winter season demand are expected to provide some support in the latter half. This will be the first full quarter where reported numbers exclude the ice cream business, making like-to-like comparisons critical. On a standalone, like-for-like basis, most brokerages expect volume growth of 2% to 3% YoY, reflecting gradual recovery after GST...