As the earnings season gains pace, two big names in India’s fast-moving consumer goods (FMCG) space, Hindustan Unilever (HUL) and Nestle India are set to declare their financial results for the fourth quarter of FY25 today, Thursday, April 24.
With rural demand slowly bouncing back and the recent Union Budget putting more money in consumers’ pockets through tax relief, all eyes are on whether these macro tailwinds will show up in their earnings.
Here are five key things to track as HUL and Nestle unveil their numbers –
Dividend decision
A key focus area for shareholders today will be the dividend announcement. Both HUL and Nestle India have a track record of rewarding investors with steady payouts. In their board meetings scheduled today, both companies will consider recommending a final dividend for the financial year 2024-25.
If approved, the dividend will be subject to shareholder nod at their respective Annual General Meetings.
Q3 Recap: A quick look at recent performance
Before jumping into the March quarter results, it is also important to revisit how both companies fared in the previous quarter. HUL reported a 1.6% rise in revenue in Q3FY25 at Rs 15,818 crore. Its net profit jumped 18.9% year-on-year to Rs 2,984 crore, while EBITDA rose by a modest 0.8% to Rs 3,695 crore. However, margins slightly dipped to 23.4% compared to 23.5% a year earlier.
Meanwhile, Nestle India posted a 5% rise in net profit in Q3 at Rs 688 crore, while revenue from operations increased nearly 4% to Rs 4,779.7 crore. Domestic sales stood at Rs 4,566 crore, marking a YoY growth of 3.26%. Despite the pressures of rising costs, Nestle managed to maintain stable momentum across its product portfolio from Maggi and Milkybar to Nescafe.
Result day, call timing and trading window closures
Both companies will be releasing their earnings today, April 24. HUL has scheduled its earnings call for 4 PM IST, where the management will walk investors through the financials and key highlights. Nestle India hasn’t yet shared any details about an earnings call, though updates may be expected later in the day.
As part of regulatory compliance, both firms have implemented trading window closures for insiders. HUL’s trading window has been shut from March 16 and will reopen 48 hours after the results announcement, while Nestle India’s trading window has been closed since April 1 and will remain shut till April 26.
Share price snapshot
HUL’s share price has shown mixed performance over different time frames. Over the last five sessions, the stock has gained 2%, and delivered a 7% return in the past month. However, on a six month basis, the stock is down 3%, while it has risen 7% over the past one year. On a YTD basis, HUL’s stock has returned 4%. The company currently boasts a market cap of Rs 5.69 lakh crore, with a 52-week high of Rs 3,035 and low of Rs 2,136.
The share price of Nestle India has delivered a return of 2% over the last five trading sessions. On a one month basis, the stock declined by 2%. Over a six-month period, the share price has gained 3%, while on a yearly basis, it has fallen by 7%. Year-to-date, however, the stock has delivered a strong return of 17%. Nestle India’s 52-week high stands at Rs 98.62, and the 52-week low is Rs 72.82.