HUL Q2 Results: Underlying volume growth flat; board approves dividend of ₹19

India's largest FMCG company, Hindustan Unilever Ltd. (HUL) reported its September quarter results on Thursday, October 23, a few days after sharing a business update for the quarter. Underlying volume growth for the quarter was flat compared to a CNBC-TV18 poll of 0% to 1% growth.

The company reported a net profit of ₹2,694 crore, which is higher than the CNBC-TV18 poll of ₹2,480 crore. The net profit for the quarter also was aided by a one-time gain of ₹184 crore.

Revenue for the quarter stood at ₹15,585 crore on a standalone basis, while a CNBC-TV18 poll was expecting the growth to be at 2.2% to ₹15,850 crore. On a year-on-year basis, the topline was up 0.5%.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 2.3% from last year to ₹3,563 crore, which is exactly in-line with expectations of ₹3,560 crore.

EBITDA margin for the quarter stood at 22.9%, which is 60 basis points lower from last year, but higher than the CNBC-TV18 poll of 22.5%.

The company's commentary on demand recovery post the GST cuts along with new MD & CEO Priya Nair's first quarterly performance will be keenly watched by the street.

In a business update shared earlier, the Hindustan Unilever had stated that the consolidated business growth is likely to remain flat, or grow in low-single-digits during the quarter, as it will witness a transitory impact due to trade and channel disruption due to the GST rate reforms.

40% of HUL's portfolio has now shifted to the 5% tax slab from the 18% slab earlier. HUL had stated that the impact is likely to be felt in October as well, with potential recovery anticipated from November.

Shares of Hindustan Unilever gained as much as 2.7% before cooling off from the highs of the day, currently trading 1.5% higher at ₹2,630. The stock is up 12.5% on a year-to-date basis.