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Hindustan Unilever stock gains after Q4FY18 numbers

Shares of Hindustan Unilever gained 1% after Q4FY18 results. The company’s revenue (net of excise duty in the base quarter) grew by 10.8% yoy to Rs9,097cr led by 11% yoy volume growth.

Led by lower raw material cost and other expenses, the EBITDA jumped by 24% yoy to Rs2,048cr and EBITDA margin expanded by 241bps yoy to 22.5% (estimate of 21.4%). Due to 18.5% yoy increase in depreciation and higher tax outgo, PAT grew at a lower rate at 14.2% yoy to Rs1,351cr.

Comparable domestic growth (adjusted for GST impact) for the company stood at 16%, led by underlying strong volume growth of 11%.

Revenue growth in home care and refreshment category sequentially up by 13.2% and 12.9% respectively is very encouraging.

Company’s advertisement expense as a percent of net sales has increased by 138bps yoy to 12% to support new launches and marketing activations.

The stock is currently trading at Rs1,517.10 up by Rs12.15 or 0.81% from its previous closing of Rs1,504.95 on the BSE. The scrip opened at Rs1,526.25 and has touched a high and low of Rs1,543.25 and Rs1,512.50 respectively.