HUL Q3 FY25 Results: Net Profit Rises 19% to ₹3,001 Crore
Hindustan Unilever Ltd: Overview
Hindustan Unilever Ltd (HUL) is India’s largest fast-moving consumer goods (FMCG) company and a subsidiary of Unilever, one of the world’s leading suppliers of consumer goods. Established in 1933 and headquartered in Mumbai, HUL has become synonymous with quality products and trusted brands that cater to the daily needs of millions of Indian households. The company’s robust portfolio spans over 50 brands across categories like personal care, home care, foods, and beverages, making it a household name in India. HUL’s strategy focuses on delivering superior value through innovations, sustainable practices, and a deep understanding of Indian consumers. The company leverages its vast distribution network, which reaches urban and rural markets alike, ensuring accessibility to its products even in the remotest parts of the country.
The FMCG industry in India is one of the largest and fastest-growing sectors, driven by factors such as rising disposable incomes, urbanization, increased consumer awareness, and a growing preference for branded products. With a population of over 1.4 billion, India offers immense opportunities for FMCG companies, particularly in rural areas, which contribute significantly to industry growth. HUL’s ability to adapt to evolving market dynamics and consumer preferences has cemented its position as a market leader. The company is also a strong advocate for sustainability and inclusive growth, aligning with Unilever’s global goals. Initiatives such as reducing plastic usage, water conservation, and promoting gender equality reflect HUL’s commitment to creating a positive social and environmental impact.
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In the fabric wash category, Hindustan Unilever Ltd (HUL) recorded high-single-digit volume growth, driven by a strong, broad-based performance across formats, with liquid detergents continuing to outperform. Household care also saw high-single-digit volume growth, led by the dishwash portfolio. In personal care, the segment was impacted by a decline in the hygiene category within skin cleansing, leading to a 4% drop in underlying sales growth. However, oral care achieved mid-single-digit growth, primarily driven by Closeup.
In beverages, tea witnessed low-single-digit growth, supported by pricing adjustments, with premium brands delivering mid-single-digit growth and maintaining value and volume market leadership. Coffee continued to perform strongly, delivering double-digit growth. Nutrition drinks strengthened their value and volume market leadership despite a category decline due to subdued consumption. Packaged foods experienced mid-single-digit growth, driven by robust with strong volume growth in ketchup, mayonnaise, food solutions, international sauces, and cuisines. Meanwhile, ice cream revenue remained flat year-on-year.
HUL has incorporated Kwality Wall’s (India) Limited on January 10, 2025, as part of the demerger of its ice cream business, with the Board of Directors approving the scheme of arrangement. This demerger allows shareholders to participate in future value creation through a 1:1 share entitlement ratio. The move is expected to unlock significant growth potential, with focused management providing flexibility to deploy strategies tailored to the unique nature of the ice cream business.
Business Segments
- Home Care: This segment includes products such as fabric wash, household cleaning, and water purifiers. Prominent brands under this segment are Surf Excel, Rin, Wheel, Sunlight, Vim, and Domex. HUL leads the fabric wash market in India with brands like Surf Excel, which cater to premium consumers, and Wheel, targeting value-conscious buyers. The segment has witnessed consistent growth due to innovations in detergent formulations and increasing consumer preference for higher-performance products. HUL’s water purifiers, sold under the brand name Pureit, offer a range of solutions for safe drinking water, catering to various consumer segments.
- Beauty and Personal Care: This is one of HUL’s largest revenue-generating segments, with a wide array of brands in skin care, hair care, oral care, and cosmetics. Brands like Dove, Vaseline, and Ponds cater to diverse consumer needs, offering products ranging from moisturizing lotions to fairness creams. HUL’s hair care portfolio, led by brands like Dove, Sunsilk, and Clinic Plus, dominates the Indian market, providing solutions for hair fall, dryness, and damage. Lakme is a leading cosmetics and beauty brand, offering a wide range of makeup products and salon services.
- Foods and Refreshments: This segment includes packaged foods, beverages, ice creams, and health foods, featuring brands like Knorr, Kissan, Hellmann’s, Brooke Bond, Lipton, etc. HUL’s food portfolio includes products like soups, ketchup, mayonnaise, and jams under brands such as Knorr, Kissan, and Hellmann’s. These brands cater to the rising demand for convenience and ready-to-eat food products. Brooke Bond and Lipton are market leaders in the tea category, offering a variety of black, green, and specialty teas.
- Health, Hygiene, and Nutrition: This segment emerged as a key focus area for HUL, especially post-pandemic, addressing the growing consumer demand for immunity-boosting products and hygiene solutions. Health food drinks like Horlicks and Boost were added to HUL’s portfolio through its merger with GSK Consumer Healthcare in 2020. These brands have further strengthened the company’s presence in the nutrition space
Subsidiary Information
- Unilever India Exports Ltd: Unilever India Exports Limited is a key subsidiary of Hindustan Unilever Ltd (HUL), responsible for managing the company’s export operations. This entity enables HUL to cater to international markets, with its products reaching consumers in over 100 countries worldwide. The export portfolio includes a diverse range of products spanning personal care, home care, and food categories. Through Unilever India Exports Limited, HUL leverages its strong global brand equity and the cost-effective production capabilities of its Indian manufacturing units to expand its presence across continents.
- Lakme Lever Pvt Ltd: Lakme Lever Pvt Ltd is dedicated to the beauty and salon business, playing a pivotal role in strengthening the Lakme brand’s presence in India’s premium beauty segment. This subsidiary operates Lakme Salons across the country, providing professional beauty services and high-quality products to customers. By combining salon services with Lakme’s product portfolio, this subsidiary creates a holistic beauty experience for consumers.
- Hindlever trust Ltd: Hindlever Trust Ltd is a subsidiary focused on managing HUL’s employee welfare and retirement benefit schemes. It plays a crucial role in ensuring the financial security and well-being of the company’s workforce. This entity oversees pension plans, gratuity funds, and other employee benefits, reflecting HUL’s commitment to its people.
- Brooke Bond Real Estates Pvt Ltd: Brooke Bond Real Estates Pvt Ltd is responsible for managing HUL’s real estate assets and facilities. This subsidiary oversees the development, maintenance, and utilization of the company’s infrastructure, ensuring operational efficiency and cost optimization. It ensures that office spaces, warehouses, manufacturing facilities, and other properties are effectively utilized, contributing to HUL’s overall productivity.
- GSK Consumer healthcare Ltd: GSK Consumer Healthcare Ltd became a part of HUL following the merger of Hindustan Unilever and GlaxoSmithKline Consumer Healthcare in 2020. This subsidiary brought popular health and nutrition brands like Horlicks and Boost under HUL’s portfolio, significantly strengthening its presence in the health foods segment. These brands enjoy high consumer trust and cater to India’s growing demand for nutrition-based products. With Horlicks and Boost, HUL has tapped into the health and wellness space, addressing the nutritional needs of children and adults alike
Q3 FY25 Earnings
- Revenue of ₹15818 crore in Q3 FY25 up by 1.6% YoY from ₹15567 crore in Q3 FY24.
- EBITDA of ₹3695 crore in this quarter at a margin of 23% compared to 24% in Q3 FY24.
- Profit of ₹2989 crore in this quarter compared to a ₹2508 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 15567 | 15818 | 60580 | 61896 |
| Expenses | 11902 | 12123 | 46433 | 47237 |
| EBITDA | 3665 | 3695 | 14147 | 14659 |
| OPM | 24% | 23% | 23% | 24% |
| Other Income | 182 | 740 | 448 | 817 |
| Net Profit | 2508 | 2989 | 10143 | 10282 |
| NPM | 16.1% | 18.9% | 16.7% | 16.6% |
| EPS | 10.7 | 12.7 | 43.07 | 43.7 |