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Time of India
30-04-2025
- Business
- Time of India
Unilever, Reliance see signs of consumer demand revival in India
Consumers companies are seeing early signs of demand pick up among the 400-million strong group of urban shoppers in India, providing a buffer to any volatility that might be unleashed by the country's trade negotiations with the US. Hindustan Unilever Ltd., the country's no. 1 consumer goods maker that's considered a bellwether for the sector, expects demand conditions to gradually improve boosted by macroeconomic tailwinds, with growth in April to September period exceeding the levels in the preceding six months. The Indian unit of Unilever Plc also saw lesser 'downtrading' this quarter — a practice when buyers start pivoting to cheaper or low-value packs — signaling a recovery in purchasing patterns, its Chief Financial Officer Ritesh Tiwari told reporters last week. A day later, Reliance Retail , part of Mukesh Ambani's energy-to-entertainment conglomerate, posted a 29 per cent jump in quarterly profit, boosted in part by Maha Kumbh Mela, world's largest religious gathering earlier this year. The green shoots being flagged in India's consumption story signal a yearlong malaise could be lifting. A strong domestic market will provide some respite to Indian firms as US President Donald Trump's tariffs threaten global recession. China too is encouraging its firms to focus on the massive home market amid headwinds overseas. Worst Over 'The worst of the domestic cyclical slowdown seems behind,' said Teresa John, an economist with Nirmal Bang Institutional Equities. Indian government and central bank-led growth boosters 'could shield the economy from tariffs,' she said. About $12 billion of tax sops announced in February, a rate cut this month with signs of more to come, subdued inflation and forecast of an ample monsoon are expected to perk up India's buyers. Broader economic factors 'should augur well for discretionary income' in both rural and urban regions, Hindustan Unilever 's Tiwari said. He doesn't expect any new headwinds impacting demand. Macrotech Developers Ltd. 's Managing Director Abhishek Lodha said last week that he expects a lift to purchasing power for the mid-income housing segment, while Shriram Finance Ltd. — which lends for purchases of cars and bikes — sees demand for loans in urban India to recover in the coming quarters. UltraTech Cement Ltd. , India's biggest maker of this key construction material, expects a strong volumes growth on back of housing and infrastructure demand. Realtor DLF Ltd. is expecting sales in its high-end shopping complexes to grow as much as 10 per cent in the year ending March 2026 after slightly underwhelming sales a year earlier, Pushpa Bector, senior executive director and business head at DLF Retail, said in an interview this month. The coming quarter will be 'critical' for India's consumption story, said Satish Meena, founder of consumer data firm, Datum Intelligence. 'There is expected to be more money with customers' over the next couple months, he said. Tariff Shadow While India's central bank maintains optimism about domestic growth, a top finance ministry official has warned of the ripple effects of US tariffs. The 'first order' hit from US reciprocal tariffs on India, if imposed, could shave off up to 0.5 percentage point off its economic growth , which is 'not a huge impact,' India's Economic Affairs Secretary Ajay Seth said in Washington last week. 'But the second order would be important' if the global economy grows less, he said. 'Given global headwinds, exports and private investments are likely to be more impacted relative to consumption,' Nomura's Sonal Varma told Bloomberg News. 'Labor market signals are also mixed, so consumption itself is not out of the woods.' Some companies also remain cautious. Tata Consumer Products Ltd. , the local partner for Starbucks Corp., said on April 23 it slowed the opening of outlets 'a bit' due to softness in the economy. India's largest carmaker, Maruti Suzuki India Ltd. has forecast a modest 2 per cent growth for the sector in the year through March 2026. Trickle Down Others, however, are accelerating their growth initiatives anticipating that the trickle down effect of tax sops, rate cuts and bountiful monsoon — it boosts rural purchasing power — will culminate into a shopping spree. Reliance Retail, after streaming its operations and closing underperforming stores, plans to make a marketing and advertising splash for Shein in India after a low-key relaunch in February. Ambani's unit will also further develop its 30-minute delivery format JioMart to muscle into India's booming quick commerce segment. Unilever's India unit is also stepping up investments. 'On macro, the triggers are tending biasing toward positive now,' Rohit Jawa, chief executive officer at Hindustan Unilever, told analysts on Thursday. 'We feel this is the time for us to lean in.'
Time of India
29-04-2025
- Business
- Time of India
Unilever, Reliance see signs of consumer demand revival in India
Consumers companies are seeing early signs of demand pick up among the 400-million strong group of urban shoppers in India, providing a buffer to any volatility that might be unleashed by the country's trade negotiations with the US. Hindustan Unilever Ltd., the country's no. 1 consumer goods maker that's considered a bellwether for the sector, expects demand conditions to gradually improve boosted by macroeconomic tailwinds, with growth in April to September period exceeding the levels in the preceding six months. The Indian unit of Unilever Plc also saw lesser 'downtrading' this quarter — a practice when buyers start pivoting to cheaper or low-value packs — signaling a recovery in purchasing patterns, its Chief Financial Officer Ritesh Tiwari told reporters last week. A day later, Reliance Retail , part of Mukesh Ambani's energy-to-entertainment conglomerate, posted a 29% jump in quarterly profit, boosted in part by Maha Kumbh Mela, world's largest religious gathering earlier this year. The green shoots being flagged in India's consumption story signal a yearlong malaise could be lifting. A strong domestic market will provide some respite to Indian firms as US President Donald Trump's tariffs threaten global recession. China too is encouraging its firms to focus on the massive home market amid headwinds overseas. Worst Over 'The worst of the domestic cyclical slowdown seems behind,' said Teresa John, an economist with Nirmal Bang Institutional Equities. Indian government and central bank-led growth boosters 'could shield the economy from tariffs,' she said. About $12 billion of tax sops announced in February, a rate cut this month with signs of more to come, subdued inflation and forecast of an ample monsoon are expected to perk up India's buyers. Broader economic factors 'should augur well for discretionary income' in both rural and urban regions, Hindustan Unilever 's Tiwari said. He doesn't expect any new headwinds impacting demand. Macrotech Developers Ltd. 's Managing Director Abhishek Lodha said last week that he expects a lift to purchasing power for the mid-income housing segment, while Shriram Finance Ltd. — which lends for purchases of cars and bikes — sees demand for loans in urban India to recover in the coming quarters. UltraTech Cement Ltd. , India's biggest maker of this key construction material, expects a strong volumes growth on back of housing and infrastructure demand. Realtor DLF Ltd. is expecting sales in its high-end shopping complexes to grow as much as 10% in the year ending March 2026 after slightly underwhelming sales a year earlier, Pushpa Bector, senior executive director and business head at DLF Retail, said in an interview this month. The coming quarter will be 'critical' for India's consumption story, said Satish Meena, founder of consumer data firm, Datum Intelligence. 'There is expected to be more money with customers' over the next couple months, he said. Tariff Shadow While India's central bank maintains optimism about domestic growth, a top finance ministry official has warned of the ripple effects of US tariffs. The 'first order' hit from US reciprocal tariffs on India, if imposed, could shave off up to 0.5 percentage point off its economic growth , which is 'not a huge impact,' India's Economic Affairs Secretary Ajay Seth said in Washington last week. 'But the second order would be important' if the global economy grows less, he said. 'Given global headwinds, exports and private investments are likely to be more impacted relative to consumption,' Nomura's Sonal Varma told Bloomberg News. 'Labor market signals are also mixed, so consumption itself is not out of the woods.' Some companies also remain cautious. Tata Consumer Products Ltd. , the local partner for Starbucks Corp., said on April 23 it slowed the opening of outlets 'a bit' due to softness in the economy. India's largest carmaker, Maruti Suzuki India Ltd. has forecast a modest 2% growth for the sector in the year through March 2026. Trickle Down Others, however, are accelerating their growth initiatives anticipating that the trickle down effect of tax sops, rate cuts and bountiful monsoon — it boosts rural purchasing power — will culminate into a shopping spree. Reliance Retail, after streaming its operations and closing underperforming stores, plans to make a marketing and advertising splash for Shein in India after a low-key relaunch in February. Ambani's unit will also further develop its 30-minute delivery format JioMart to muscle into India's booming quick commerce segment. Unilever's India unit is also stepping up investments. 'On macro, the triggers are tending biasing toward positive now,' Rohit Jawa, chief executive officer at Hindustan Unilever, told analysts on Thursday. 'We feel this is the time for us to lean in.'
Economic Times
29-04-2025
- Business
- Economic Times
Unilever, Reliance see signs of consumer demand revival in India
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Consumers companies are seeing early signs of demand pick up among the 400-million strong group of urban shoppers in India, providing a buffer to any volatility that might be unleashed by the country's trade negotiations with the US. Hindustan Unilever Ltd., the country's no. 1 consumer goods maker that's considered a bellwether for the sector, expects demand conditions to gradually improve boosted by macroeconomic tailwinds, with growth in April to September period exceeding the levels in the preceding six Indian unit of Unilever Plc also saw lesser 'downtrading' this quarter — a practice when buyers start pivoting to cheaper or low-value packs — signaling a recovery in purchasing patterns, its Chief Financial Officer Ritesh Tiwari told reporters last week.A day later, Reliance Retail , part of Mukesh Ambani's energy-to-entertainment conglomerate, posted a 29% jump in quarterly profit, boosted in part by Maha Kumbh Mela, world's largest religious gathering earlier this green shoots being flagged in India's consumption story signal a yearlong malaise could be lifting. A strong domestic market will provide some respite to Indian firms as US President Donald Trump's tariffs threaten global recession. China too is encouraging its firms to focus on the massive home market amid headwinds overseas.'The worst of the domestic cyclical slowdown seems behind,' said Teresa John, an economist with Nirmal Bang Institutional Equities. Indian government and central bank-led growth boosters 'could shield the economy from tariffs,' she $12 billion of tax sops announced in February, a rate cut this month with signs of more to come, subdued inflation and forecast of an ample monsoon are expected to perk up India's economic factors 'should augur well for discretionary income' in both rural and urban regions, Hindustan Unilever's Tiwari said. He doesn't expect any new headwinds impacting demand. Macrotech Developers Ltd. 's Managing Director Abhishek Lodha said last week that he expects a lift to purchasing power for the mid-income housing segment, while Shriram Finance Ltd. — which lends for purchases of cars and bikes — sees demand for loans in urban India to recover in the coming quarters. UltraTech Cement Ltd. , India's biggest maker of this key construction material, expects a strong volumes growth on back of housing and infrastructure DLF Ltd. is expecting sales in its high-end shopping complexes to grow as much as 10% in the year ending March 2026 after slightly underwhelming sales a year earlier, Pushpa Bector, senior executive director and business head at DLF Retail, said in an interview this coming quarter will be 'critical' for India's consumption story, said Satish Meena, founder of consumer data firm, Datum Intelligence. 'There is expected to be more money with customers' over the next couple months, he ShadowWhile India's central bank maintains optimism about domestic growth, a top finance ministry official has warned of the ripple effects of US 'first order' hit from US reciprocal tariffs on India, if imposed, could shave off up to 0.5 percentage point off its economic growth , which is 'not a huge impact,' India's Economic Affairs Secretary Ajay Seth said in Washington last week. 'But the second order would be important' if the global economy grows less, he said.'Given global headwinds, exports and private investments are likely to be more impacted relative to consumption,' Nomura's Sonal Varma told Bloomberg News. 'Labor market signals are also mixed, so consumption itself is not out of the woods.'Some companies also remain cautious. Tata Consumer Products Ltd. , the local partner for Starbucks Corp., said on April 23 it slowed the opening of outlets 'a bit' due to softness in the largest carmaker, Maruti Suzuki India Ltd. has forecast a modest 2% growth for the sector in the year through March DownOthers, however, are accelerating their growth initiatives anticipating that the trickle down effect of tax sops, rate cuts and bountiful monsoon — it boosts rural purchasing power — will culminate into a shopping Retail, after streaming its operations and closing underperforming stores, plans to make a marketing and advertising splash for Shein in India after a low-key relaunch in unit will also further develop its 30-minute delivery format JioMart to muscle into India's booming quick commerce India unit is also stepping up investments.'On macro, the triggers are tending biasing toward positive now,' Rohit Jawa, chief executive officer at Hindustan Unilever, told analysts on Thursday. 'We feel this is the time for us to lean in.'
Time of India
29-04-2025
- Business
- Time of India
Unilever, Reliance see signs of consumer demand revival in India
Consumers companies are seeing early signs of demand pick up among the 400-million strong group of urban shoppers in India, providing a buffer to any volatility that might be unleashed by the country's trade negotiations with the US. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats Hindustan Unilever Ltd., the country's no. 1 consumer goods maker that's considered a bellwether for the sector, expects demand conditions to gradually improve boosted by macroeconomic tailwinds, with growth in April to September period exceeding the levels in the preceding six months. The Indian unit of Unilever Plc also saw lesser 'downtrading' this quarter — a practice when buyers start pivoting to cheaper or low-value packs — signaling a recovery in purchasing patterns, its Chief Financial Officer Ritesh Tiwari told reporters last week. A day later, Reliance Retail , part of Mukesh Ambani's energy-to-entertainment conglomerate, posted a 29% jump in quarterly profit, boosted in part by Maha Kumbh Mela, world's largest religious gathering earlier this year. The green shoots being flagged in India's consumption story signal a yearlong malaise could be lifting. A strong domestic market will provide some respite to Indian firms as US President Donald Trump's tariffs threaten global recession. China too is encouraging its firms to focus on the massive home market amid headwinds overseas. Live Events Worst Over 'The worst of the domestic cyclical slowdown seems behind,' said Teresa John, an economist with Nirmal Bang Institutional Equities. Indian government and central bank-led growth boosters 'could shield the economy from tariffs,' she said. About $12 billion of tax sops announced in February, a rate cut this month with signs of more to come, subdued inflation and forecast of an ample monsoon are expected to perk up India's buyers. Broader economic factors 'should augur well for discretionary income' in both rural and urban regions, Hindustan Unilever's Tiwari said. He doesn't expect any new headwinds impacting demand. Macrotech Developers Ltd. 's Managing Director Abhishek Lodha said last week that he expects a lift to purchasing power for the mid-income housing segment, while Shriram Finance Ltd. — which lends for purchases of cars and bikes — sees demand for loans in urban India to recover in the coming quarters. UltraTech Cement Ltd. , India's biggest maker of this key construction material, expects a strong volumes growth on back of housing and infrastructure demand. Realtor DLF Ltd. is expecting sales in its high-end shopping complexes to grow as much as 10% in the year ending March 2026 after slightly underwhelming sales a year earlier, Pushpa Bector, senior executive director and business head at DLF Retail, said in an interview this month. The coming quarter will be 'critical' for India's consumption story, said Satish Meena, founder of consumer data firm, Datum Intelligence. 'There is expected to be more money with customers' over the next couple months, he said. Tariff Shadow While India's central bank maintains optimism about domestic growth, a top finance ministry official has warned of the ripple effects of US tariffs. The 'first order' hit from US reciprocal tariffs on India, if imposed, could shave off up to 0.5 percentage point off its economic growth , which is 'not a huge impact,' India's Economic Affairs Secretary Ajay Seth said in Washington last week. 'But the second order would be important' if the global economy grows less, he said. 'Given global headwinds, exports and private investments are likely to be more impacted relative to consumption,' Nomura's Sonal Varma told Bloomberg News. 'Labor market signals are also mixed, so consumption itself is not out of the woods.' Some companies also remain cautious. Tata Consumer Products Ltd. , the local partner for Starbucks Corp., said on April 23 it slowed the opening of outlets 'a bit' due to softness in the economy. India's largest carmaker, Maruti Suzuki India Ltd. has forecast a modest 2% growth for the sector in the year through March 2026. Trickle Down Others, however, are accelerating their growth initiatives anticipating that the trickle down effect of tax sops, rate cuts and bountiful monsoon — it boosts rural purchasing power — will culminate into a shopping spree. Reliance Retail, after streaming its operations and closing underperforming stores, plans to make a marketing and advertising splash for Shein in India after a low-key relaunch in February. Ambani's unit will also further develop its 30-minute delivery format JioMart to muscle into India's booming quick commerce segment. Unilever's India unit is also stepping up investments. 'On macro, the triggers are tending biasing toward positive now,' Rohit Jawa, chief executive officer at Hindustan Unilever, told analysts on Thursday. 'We feel this is the time for us to lean in.'
The Print
25-04-2025
- Business
- The Print
HUL Q4 net profit slips 3.3 pc to Rs 2,475 cr; FY25 turnover crosses Rs 60,000 crore
However, revenue from product sales stood at Rs 15,416 crore in the March quarter, led by volume growth. It rose 2.68 per cent from Rs 15,013 crore in the year-ago period. HUL had logged a net profit of Rs 2,561 crore in the January-March quarter a year ago, the company said in a regulatory filing. New Delhi, Apr 24 (PTI) FMCG major Hindustan Unilever Ltd (HUL) on Thursday said its consolidated net profit dipped 3.35 per cent to Rs 2,475 crore in the fourth quarter ended March 2025, hit by a contraction in margins due to inflation in palm oil, tea and coffee. 'HUL reported an Underlying Sales Growth (USG) of 3 per cent and an Underlying Volume Growth (UVG) of 2 per cent,' the company said in its earnings statement. In a post-results call, HUL CFO Ritesh Tiwari said, 'Gross margin at 49.8 per cent was lower by 160 bps (basis points) year on year. This contraction in gross margin was driven by commodity inflation across palm oil, tea and coffee that wasn't fully priced for'. HUL's EBITDA margin, which was at 23.1 per cent, declined 30 bps year-on-year, he added. Its 'profit after tax, before exceptional items and profit after tax both grew at 4 per cent including the benefit of interest income on prior period tax adjustment,' he said. On standlone basis, HUL's profit in March quarter was up 3.61 per cent to Rs 2,493 crore and its revenue from sale of goods was at Rs 15,000 crore, up 2.08 per cent. On consolidated basis, HUL's total expenses in the March quarter was at Rs 12,478 crore, up 3.12 per cent, and total income, which includes other revenue, was up 3.48 per cent to Rs 15,979 crore. In the March quarter, HUL's revenue from the home care segment grew marginally by 1.85 per cent to Rs 5,815 crore, on account of price cuts. 'The segment witnessed negative price growth on account of pricing actions taken to pass on commodity-led benefits to consumers,' it said. The fabric wash category delivered mid single-digit volume growth led by premium fabric wash and fabric conditioners, while household care volumes grew in high single-digit. The 'liquids' portfolio in fabric wash and household care continued to grow in double-digits driven by sustained market development activities and expansion into new formats and segments. The company's 'beauty & wellbeing' segment reported a growth of 6.62 per cent to Rs 3,265 crore. The segment, which houses Lakme and other brands, had a low single-digit volume growth in the March quarter. Investment in channels of the future continues to yield positive results with the segment delivering double-digit competitive growth in these channels. Similarly, HUL's revenue from personal care went up 3.05 per cent to Rs 2,126 crore. The segment, which has brands such as Sunsilk, Dove, Pond's, Pears, Rexona, Closeup, etc., has a low single-digit volume decline. 'Skin cleansing (segment) grew in low-single digits driven by calibrated pricing actions taken due to commodity inflation,' it said. Non-hygiene segment, which includes body washes, shampoos, and conditioners, delivered high-single-digit growth, while oral care witnessed low single-digit growth led by Closeup. However, HUL's revenue from food was marginally down in the March quarter to Rs 3,896 crore due to volume decline. This was at Rs 3,910 crore in the corresponding January-March quarter of FY24. 'Tea delivered low single-digit growth driven by pricing and maintained its value and volume leadership. Coffee sustained its double-digit growth momentum. Nutrition drinks turnover declined, impacted by continued category headwinds and transitionary impact of pack-price architecture change,' it said. Its packaged food segment grew in mid single-digit led by outperformance in ketchup, mayonnaise and international cuisines. HUL's ice cream business, where it operates with brands such as Kwality Wall's, Cornetto and Magnum, delivered double-digit volume-led growth. HUL revenue from 'other' segment, which includes exports, consignment, etc. was up 21.88 per cent to Rs 568 crore in Q4 of FY25. In the financial year ended March 2025, HUL's net profit rose 3.78 per cent to Rs 10,671 crore. It was at Rs 10,282 crore in FY24. The company's total income in FY25 rose 2.28 per cent to Rs 64,138 crore, as against Rs 62,707 crore a year before. 'In FY25, our turnover surpassed Rs 60,000 crore, with an Underlying Sales Growth of 2 per cent and an EPS growth of 5 per cent. While absolute volume tonnage grew in mid single-digits, it was partially offset by a negative mix,' HUL CEO and Managing Director Rohit Jawa said. Jawa further noted that the company delivered a competitive performance, further strengthening its market leadership during the year. 'This year marked a step-up in our portfolio transformation with increased innovation in high-growth spaces, amplified investments in channels of the future, acquisition of Minimalist, divestment of Pureit, and the decision to demerge ice cream business,' he said. About the outlook, Jawa said, he anticipates demand conditions to gradually improve over the next fiscal year. Meanwhile, in a separate filing, HUL informed that its board has proposed a final dividend of Rs 24 per share. Together with the interim dividend of Rs 19 per share and special dividend of Rs 10 per share declared in October 2024, the total dividend for the said period amounts to Rs 53 per equity share of face value of Re 1 each. Shares of HUL on Thursday settled 4 per cent lower at Rs 2,325.25 apiece on BSE. PTI KRH HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
