Shares of Hindustan Unilever were down over 1% at Rs 558 ahead of its third quarter earnings due for release later today on worries over slowdown in volume growth and margin pressure for the quarter ended December 2013.
In recent analyst interactions, the company management has said it expects further pressure on overall volume growth, which is likely to keep a check on its top line growth. Higher investments in advertising and promotional activities coupled with rising input costs could reflect in subdued profit growth for the company, say analysts.
Rising prices of key inputs such as palm oil and linear alkyl benzene (up about 15 per cent over last year) may put pressure on the company’s margins till end-FY14. The company is also likely to witness the full impact of rupee depreciation in the December 2013 quarter.
Rising prices of key inputs such as palm oil and linear alkyl benzene (up about 15 per cent over last year) may put pressure on the company’s margins till end-FY14. The company is also likely to witness the full impact of rupee depreciation in the December 2013 quarter.
Over 400,000 shares were traded on both the stock exchanges so far.
