Hindustan Unilever slips 3% post Q1 results on profit booking

Shares of Hindustan Unilever (HUL) have slipped 3% to Rs 1,701 per share on the BSE on Tuesday due to profit booking after the fast moving consumer goods (FMCG) company reported strong numbers for June 2018 quarter (Q1FY19), broadly in-line with analyst estimates.
The stock has fallen 4.4% from its all-time high of Rs 1,780 recorded in early morning trade on BSE today. The S&P BSE Sensex was trading 0.17% higher at 36,384 points at 10:09 am.

In calendar year 2018, HUL had outperformed the market by surging 28% as compared to 7% rise in the benchmark index till Monday. In past one year, it had rallied 54% against 13.4% gain in the Sensex.

HUL Q1FY19 performance was in line with expectations though the growth in domestic consumer sales volumes at 12% was better than expectations. During the quarter, reported revenue grew at 11%YoY at Rs 95 billion. EBIDTA and net profit grew at a higher rate of 21% YoY and 19% YoY respectively to Rs 22.5 billion and Rs 15.7 billion, respectively.

Nestle India market cap crosses Rs 1-trillion; stock rises 50% from Feb low

Nestle India on Tuesday became the third listed fast moving consumer goods (FMCG) company to join the elite club of firms that have seen their market capitalisation (market cap) soar past the Rs 1 trillion mark.
With Rs 1.01 trillion market cap, Nestle India stands at 28th position in overall market-cap ranking at 11:23 am; the BSE data shows. The stock is trading at its all-time high level of Rs 10,450, up 2.4% in otherwise subdued market. The S&P BSE Sensex was trading 0.12% or 45 points higher at 36,369 levels.

Hindustan Unilever (HUL) is the country’s most valued FMCG Company with a market cap of Rs 3.67 trillion, while ITC have market cap of Rs 3.32 trillion, data shows.

Thus far in the calendar year 2018, Nestle India has outperformed the market by surging 33%, as compared to 7% rise in the Sensex. The stock rallied 50% from its February 9, 2018 low of Rs 6,959 against 7% rise in the benchmark index.

Hindustan Unilever hits new high ahead of Q1 results

Shares of Hindustan Unilever (HUL) hit a new high of Rs 1,770 per share, up 1.6% on the BSE in intra-day trade so far on Monday, ahead of its results for the June quarter (Q1FY19) later in the day.
Since May 14, 2018, after March quarter (Q4FY18) results, HUL has outperformed the market by surging 17.5% as compared to 2.8% rise in the S&P BSE Sensex. Thus far in the calendar year 2018, the stock of fast moving consumer goods (FMCG) company has rallied 29% against 7.3% gain in the benchmark index.

HUL is the largest FMCG Company in India, operating across a host of categories in home care, personal care and foods.

ICICI Securities expect HUL to post 12.9% comparable sales growth in Q1FY19 mainly led by volume growth of 8% as GST rate cut on detergents in November 2017 has led to price cuts by the company during the quarter along with its focus on premiumisation and market share gains.

“Due to higher raw material and advertisement costs, the operating margin is expected to remain flat at 21.7%. We expect net profit to grow 16.5% to Rs 14.95 billion,” the brokerage firm said in Q1FY19 result preview.

FMCG index hits new high; HUL, Godrej Consumer at record levels

Shares of fast moving consumer goods (FMCG) companies continued at their upward march on Wednesday with the Nifty FMCG index hitting a new high of 29,958 on the National Stock Exchange (NSE), fuelled by expectations of a healthy performance in June quarter, aided by a low base and a healthy underlying demand scenario.

Hindustan Unilever (HUL), Godrej Consumer Products (GCPL), Jubilant FoodWorks and Marico from the Nifty FMCG index hit their respective record highs on the NSE in intra-day trade today. At 11:43 am; Nifty FMCG index was up 0.75% at 29,938, as compared to 0.10% decline in the Nifty 50 index.


Thus far in the current calendar year 2018 (CY18), the FMCG index has rallied 11% against 4% rise in the benchmark index. Jubilant FoodWorks (up 61%), Britannia Industries (35%), GCPL (26%) and HUL (23%) were up more than 20% during this period.

Patanjali Ayurved hits GST roadblock: Sales growth may slow down in FY18

After growing at a breakneck pace for five years, Baba Ramdev’s Patanjali Ayurved has hit a major roadblock. During the financial year 2017-18, the group’s sales growth has slowed down considerably–- thanks to the massive transformational work following the implementation of the good and services tax (GST) regime in mid-2017.

According to Patanjali spokesperson S K Tijarawala, the initial glitches related to GST and the realignment work required due to its implementation cost Patanjali two months’ business in 2017. “We are in a growth mode and we have grown during the past year, contrary to the initial predictions that FMCG companies would face de-growth due to the implementation of GST. But, unlike other years, in 2017-18 we got only 10 months to do business. This might have a certain impact. The final revenue numbers are still being calculated. But, what we can confidently say now is that the 2017-18 revenue figure will not be less than what it was in 2016-17”, he told Business Standard.


In 2016-17, the Patanjali group had posted Rs 105.6 billion in revenues, of which Patanjali Ayurved – the flagship entity that markets most of its packaged consumer good products – contributed Rs 93.46 billion. Earlier, Baba Ramdev had set a target of doubling Patanjali’s sales during 2017-18 to over Rs 200 billion.

Flipkart's silent soldiers: Men who will lead the firm in its next innings

During the past two years and more, the baton of leadership at Flipkart saw quick change of hands. There were times when access to capital was considered the biggest constraint, as rival Amazon was continuing to splurge to march ahead. But Flipkart stay focused on to its core belief and execution capability, and the results are quite visible today, as it not only continues stay ahead in the race in almost every category, but global investors are also now more than willing than before to put their bet here.

The credit for this seemingly impossible feat could be given to a single man, but it’s better deserved by the team of top leaders who have worked relentlessly in the background to make this happen. In spite of its ups and downs, Flipkart has created a strong leadership pipeline as the country’s most valuable startup readies for the future with around 75-80 leaders who are now steering different key businesses and categories that have been instrumental to retain its leadership. Several of them have moved up the ranks as the company has grown, while others have been roped in from global giants Google, Amazon and Microsoft apart from large FMCG and consulting firms over the years.
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Patanjali and its grand plans: Ramdev expects Rs 20,000 cr revenue in FY18

Baba Ramdev-led Patanjali is looking at a two-fold jump in sales at over Rs 20,000 crore this financial year as it plans to double its distribution network to 12,000 across the country.

Besides, the company is aspiring to further strengthen its presence and lead in most of the product categories.

The Haridwar-based FMCG firm had clocked a turnover of Rs 10,561 crore in the financial year ended March 31, 2017.

"We would grow more than double this year... By next year, Patanjali would be in the leading position and in most of the product categories, it would be number one," yoga guru Ramdev said.

The company is in the process of setting up mega production units at several places, including Noida, Nagpur, and Indore, which would take its production capacity to Rs 60,000 crore from the existing Rs 35,000 crore.

"Our Noida facility would have a production capacity of Rs 20,000 crore, Nagpur 15,000 crore to Rs 20,000 crore and Indore Rs 5,000 crore," he added.

The company is also strengthening its distribution network to reach more consumers across the country.

"We would double our distributors' network to 12,000 from the present 6,000," Ramdev said.

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