Competition from Patanjali has softened : HUL

Anubhav Sahu

Moneycontrol Research

Hindustan Unilever (HUL) posted a strong set of Q2 FY19 earnings on double-digit volume growth, which was broadly as per our expectation. Domestic consumer sales grew 12 percent year-on-year, ahead of industry growth, aided by sustained revival in rural growth (1.25 times urban growth).

Double-digit sales growth for all divisions in Q2

Result snapshot

Source: Company

This is also the first quarter after the rollout of the Goods & Service Tax (GST) where YoY reported numbers are comparable. Overall operating sales grew 11 percent backed by double-digit sales growth in all three divisions. The management reported its fourth consecutive quarter of double-digit volume growth (10 percent).

However, pricing growth of around 2 percent was the lowest in recent times. Recent price hikes would be fully reflective in the third quarter. Gross margin