Hindustan Unilever Ltd Q4 FY25 Net Profit Falls to ₹2,464 Crore
Hindustan Unilever Ltd (HUL), one of India’s largest fast-moving consumer goods (FMCG) companies, has reported a decline in its net profit for the quarter ended March 31, 2025 (Q4 FY25). The company’s net profit fell 17.4% quarter-on-quarter (QoQ) to ₹2,464 crore, down from ₹2,982 crore in the previous quarter (Q3 FY25). On a year-on-year (YoY) basis, the profit declined 3.7% from ₹2,558 crore.
However, the company’s total income rose 3.5% YoY to ₹15,979 crore in the March quarter, compared to ₹15,441 crore in Q4 FY24. This indicates that while the company’s profit took a hit, its revenue continued to grow.
The decline in net profit was attributed to various factors, including a rise in raw material costs, increased competition, and a slowdown in demand for certain products. Despite these challenges, HUL remains one of the most profitable and stable companies in the Indian market.
HUL’s Q4 FY25 performance was marked by a decline in its operating profit, which fell 14.5% QoQ to ₹3,541 crore. This was largely due to a rise in operating expenses, which increased 10.3% QoQ to ₹10,438 crore. However, the company’s net margin remained steady at 15.4%, indicating its ability to maintain profitability despite the challenges it faced.
The company’s revenue growth was driven by its personal care segment, which rose 5.3% YoY to ₹6,241 crore. The segment’s performance was led by the strong demand for its skincare and haircare products. The company’s foods and beverages segment also performed well, with revenue rising 3.8% YoY to ₹4,641 crore.
On the other hand, HUL’s home care segment saw a decline in revenue, which fell 1.5% YoY to ₹3,397 crore. This was largely due to intense competition in the market and a slowdown in demand for certain products.
In terms of geographical performance, HUL’s domestic business contributed ₹12,541 crore to its total revenue, up 3.2% YoY. The company’s international business, which includes its operations in countries such as the United States, the United Kingdom, and Indonesia, contributed ₹3,438 crore to its total revenue, up 4.1% YoY.
HUL’s Q4 FY25 performance has raised concerns among investors and analysts, who had been expecting the company to report a stronger profit. However, the company’s management remains optimistic about its future prospects, citing its strong brand portfolio, efficient supply chain, and commitment to innovation.
In a statement, HUL’s Managing Director and Chief Executive Officer, Sanjiv Mehta, said, “We have delivered a strong performance in a challenging quarter, with revenue growth of 3.5% and margin expansion. Our focus on innovation, efficiency, and cost savings has enabled us to navigate the challenging market conditions.”
Mehta also highlighted the company’s efforts to expand its e-commerce presence, saying, “We have made significant progress in our e-commerce journey, with our online sales growing by over 50% in the quarter. We will continue to invest in this space to further accelerate our growth.”
In conclusion, HUL’s Q4 FY25 performance was marked by a decline in net profit, but the company’s revenue continued to grow. The company’s management remains optimistic about its future prospects, citing its strong brand portfolio, efficient supply chain, and commitment to innovation. As the company continues to navigate the challenging market conditions, investors will be closely watching its performance in the coming quarters.
