HUL on slippery ground, for now
SummaryFor HUL, price cuts would mean revenue growth would be driven by volume. But investors would do well to keep expectations muted as rural demand recovery is gathering pace gradually amid a weak monsoon season so far this year.
For Hindustan Unilever Ltd (HUL), the September quarter (Q2FY24) is likely to be the fourth one where it sees gross margin improve sequentially. This would be driven by the softening trend in input costs even as the fast-moving consumer goods (FMCG) company has cut product prices in certain categories. In Q1, HUL’s gross margin stood at 49.9%.