Due to a delayed winter, Hindustan Unilever (HUL) posted a smaller-than-expected 0.6% growth in quarterly profit on Friday. This was attributed to persistently poor demand for consumer goods in the rural areas of the country.
Giants in the consumer goods industry, such as HUL rivals Nestle India and Britannia Industries, have been facing a reduction in expenditure during a period of rising costs for basic necessities including dairy and vegetables.
The manufacturer of Dove soap reported that its product sales decreased by 0.3% to Rs 14,928 crore during the quarter, with revenue falling by 1.3% and 0.3% in the home care and beauty and personal care (BPC) categories, respectively.
For the quarter that concluded on December 31, the Indian division of Unilever, a UK company, reported a profit of Rs 2,519 crore ($303.30 million).
LSEG data shows that analysts had projected an average profit of Rs 2,680 crore.
Due to declining commodity prices, HUL lowered the prices of a number of products, including detergents and household care items, which resulted in a profit miss.
