FMCG stocks saw a substantial surge in Wednesday’s trading session, buoyed by robust Q1 FY25 quarterly results. Investor sentiments on FMCG stocks were further bolstered by the government’s proactive measures in Budget 2024.
Here are some notable FMCG stocks that have shown significant increases following their quarterly results.
Hindustan Unilever Ltd. (HUL)
Price Movement
Reaching a 52-week high at Rs.2,812 per share on July 23, 2024, the share price of HUL reflected positive returns after the publishing of quarterly results of Q1 FY25. However, in Wednesday’s trading session, the share price decreased by around 1 percent to Rs.2,738.5 per share (at around 12 pm) as opposed to its previous closing price of Rs.2,766.5 apiece.
Quarterly Performance
For the quarter ended June 2024, Hindustan Unilever Ltd. reported revenue of Rs.15,166 crores, up by 3.2 percent from Rs.14,693 crores in the previous quarter of Q4 FY24. Furthermore the revenue grew by 1.5 percent from Rs.14,931 crores in last year’s same quarter.
On a quarterly basis, the Profit After Tax (PAT) grew by more than 5 percent to Rs.2,538 crores in Q1 FY25 from Rs.2,406 crores in Q4 FY24. Additionally the net profit grew by 2.7 percent year-over-year from Rs.2,472 crores in Q1 FY2024, as reported in their filings with the BSE.
In the quarter, the Earnings before interest, tax, depreciation and amortisation (EBITDA) reached Rs.3,606 crore, showing a 2 percent year-on-year increase. The EBITDA margin also improved to 23.8 percent, rising by 20 basis points (bps).
HUL has reported significant growth in its financial ratios and margins too. Ratios like Return on Capital Employed (ROCE) is at 24.73 percent and Return on Equity (ROE) is at 20.07 percent.
Revenue Mix
In Q1 FY2025, HUL demonstrated robust results across all its verticals. The Home Care vertical contributed 37 percent to its revenues, while the Beauty & Wellbeing vertical accounted for 21 percent. The Personal Care vertical contributed 15.5 percent, and the Foods & Refreshment vertical contributed 25 percent. The remaining 1.5 percent came from other verticals.
About Company
Hindustan Unilever Ltd is one of India`s largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages.
Parag Milk Foods Ltd.
Price movement
With a market capitalization of Rs.2,419 crores, the share price of Parag Milk Foods Ltd. reached an intra-day high of Rs.211.45 per share on Wednesday’s trading session, gaining more than 3 percent from its previous close of Rs.204.75 apiece.
Quarterly Performance
In Q1 FY25, Parag Milk Foods Ltd. achieved total revenue of Rs.757.93 crore, reflecting an increase of 1.11 percent compared to Rs.749.59 crores in Q1 FY24. Furthermore, on a quarter-over-quarter basis, the company experienced a 4.07 percent revenue decrease, falling from Rs.790.12 crores in the previous quarter ending March 2024.
Parag Milk Foods Ltd. has reported a year-on-year growth of 27.5 percent in its net consolidated profit to Rs.27.30 crores in Q1 FY25, compared to Rs.21.41 crores recorded in the same quarter of the previous fiscal year. In addition to that, the company’s net profit surged by 178 percent quarter-on-quarter, climbing significantly from Rs.9.4 crores in the previous quarter ending Q4 FY24.
Profitability Margins
Parag Milk Foods Ltd. has shown outstanding profitability margins, exemplified by its Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) margin increasing from 6.5 percent in Q1 FY24 to 8.1 percent in Q1 FY25. Additionally, both Profit Before Tax (PBT) and Profit After Tax (PAT) have seen robust growth of 77 percent and 27 percent respectively during the same period.
Shareholding Pattern
As per the shareholding pattern of June 2024, the Promoters hold a 42.61 percent stake in the company, Foreign Institutional Investors (FII) hold a 8.51 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 40.34 percent and 8.38 percent stake in Parag Milk Foods Ltd., respectively.
About the company
Parag Milk Foods Pvt. Limited engages in the manufacture, distribution, and export of dairy products in India. The company is India’s second largest producer of cheese under its brand Go and the country’s largest producer of cow ghee under its brand Govardhan.
Hatsun Agro Product Limited
Price Movement
Gaining more than 2 percent from its previous close of Rs.1,200 per share, the stock of Hatsun Agro Product Ltd. reached an intra day high of Rs.1,225 per share on Wednesday’s trading session.
Quarterly Results
Hatsun Agro Product Ltd. registered an incline of 10.5 percent year-on-year at Rs.2,375.06 crores in revenue for the June quarter of FY25 versus Rs.2,150.64 crores reported in Q1 FY24. Sequentially, revenue rose by more than 16 per cent as the company had recorded net profit of Rs.2,046.87 crores in Q4 FY24.
Hatsun Agro Product Ltd. experienced a remarkable 63 percent increase year-on-year in net profits, amounting to Rs 130.54 crores in the June quarter of FY25, up from Rs.80.14 crores in the same quarter of the previous year.
Furthermore, on a quarterly basis, the net profit saw a majestic 150 percent increase from Rs.52.15 crores in Q4 FY2024.
Dividend Payment
The Hatsun Agro Product Ltd. declared an interim dividend of Rs.6 per equity share (600 percent) on the fully paid up equity shares of the face value of Re.1 per share. This is the first interim dividend declared by the Board for the financial year 2024-25.
July 24, 2024 is decided as the record date for the purpose of payment of Interim Dividend. The Interim Dividend will be paid on or before August 14, 2024.
Company Profile
Hatsun Agro Products Ltd is one of the largest private sector dairy companies in India.They are the only company in India using Bactofuge Technology (from Westphalia-Germany) to clarify liquid milk.
Written by – Siddesh S Raskar
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