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HUL earnings show rural demand strain
Net profit climbed to ₹2,552 crore for the three months ended 31 March from ₹2,327 crore a year earlier, the company said in a statement to the stock exchanges on Thursday. HUL, however, expects volume growth to rebound as commodity prices soften and consumption habits adapt to higher costs. So once the inflation moderates, and in fact, deflates, and we are able to correct the price-value equation, I see no reason why the volume in rural will also not increase," he added. For the full year, the company’s sales grew 16% to ₹58,154 crore, with underlying volume growth of 5%. The company’s food and refreshment business reported weak performance due to price cuts taken in tea and downtrading in the category; the ice cream business suffered due to unseasonal rain. Our focus is on ensuring the right price-value equation for competitive volume growth, building back gross margin and stepping up A&P investments," said Tiwari. Source - Mint
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