HUL: How analysts read Q3 numbers

#1
FMCG major Hindustan Unilever (HUL) announced Monday a rise in third quarter profit of 21.91% to Rs 10.62 billion for the quarter ended Dec. 31, 2013 as compared to net profit Rs 8.71 billion in the same period last year. Total income has increased by 8.54% to Rs 72.23 billion for the quarter ended Dec. 31, 2013 from Rs 66.55 billion in the year ago period.

Commenting on result, Rikesh Parikh VP Institution Corporate Broking, Motilal Oswal Securities, said, ''HUVR's 3Q14 was in-line with all the key headline parameters-volume, sales, EBITDA and PAT-being broadly in line with our estimates. Healthy double digit topline (12.4%) growth in Personal Products and margin expansion despite high base was a key positive surprise. 4% volume growth, though subdued is competitive given the market context. We expect sales growth to remain muted for the next few quarters at least, stymied by a sluggish economy. Stock trades at 32x FY15 and 28.4x FY16 EPS. We currently have a Neutral rating on HUVR.''

V. Srinivasan, research analyst, FMCG, Angel Broking, said, ''For 3QFY2014 HUL's results were better than estimates on the operating profit and bottom-line front. The company' top-line rose by 9.4% yoy to Rs 70.38 billion. Domestic consumer business rose by 10% yoy, with a volume growth of 4% yoy. Soaps and Detergents division posted a growth of 14.5% aided by healthy volume growth in the skin cleansing segment. Laundry segment too posted a healthy growth aided by premium categories. Personal products division posted a healthy growth of 12.5% aided by healthy growth skin care, oral and hair care segments. The relaunch of Fair & Lovely aided the growth in the skin care segment. Oral care segments posted healthy performance aided by double digit growth in both Pepsodent and Close up. Strong growth in Hair care segment was led by brands such as Dove and Sunsilk. Beverages division posted a growth of 7.2% aided by double digit growth in tea. OPM rose by 130bp yoy to 14.8% aided by higher gross margin ( up 113bp yoy) and lower employee costs. Adjusted Net Profit rose by 18.3% yoy to Rs 10.39 billion aided by higher operating profit and lower tax rate. We maintain a neutral rating on the stock.''

Shares of the company gained Rs 14.1, or 2.49%, to settle at Rs 580. The total volume of shares traded was 514,632 at the BSE (Monday).
 
#2
how do you read the results of sintex? 99.5% PAT projected seems very unreal is it not. however the result is out and no movement of the stock. please advice either buy/hold/dont buy
 

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