MAM
Hindustan Unilever Q2 FY2025 sees 4 per cent decline in PAT amid competitive pressures
Mumbai: Hindustan Unilever Limited (HUL), one of India’s largest fast-moving consumer goods (FMCG) companies, faced a mixed financial performance for the quarter ending September 2024 (Q2 FY2025). While the company managed to maintain a stable revenue flow, posting a modest 2 per cent year-on-year growth, its profit after tax (PAT) took a hit, declining by 4 per cent compared to the same quarter last year. This marked a challenging period for the consumer giant as rising input costs and sluggish consumer demand weighed down its profitability.
The financial results released on 23 October 2024, indicate that HUL’s revenue from operations stood at Rs 15,319 crores, up from Rs 15,027 crores in Q2 FY2024. However, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margins saw a slight contraction. EBITDA for the quarter came in at Rs 3,647 crores, marking an 80 basis points (bps) decline to 23.8 per cent from 24.6 per cent in the same period last year.
A key highlight from the results was the dip in PAT to Rs 2,612 crores, down from Rs 2,717 crores in Q2 FY2024, representing a 4 per cent decline. This drop was driven by multiple factors, including escalating material costs and competitive pricing pressures in key segments like personal care and home care. Additionally, the company faced an exceptional restructuring charge of Rs 16 crores during the quarter, further compressing net earnings.
HUL’s executive director and company secretary, Dev Bajpai, commented on the results, stating: “While we continue to deliver on our commitment to revenue growth, profitability challenges are real. We are focused on operational efficiencies and agile strategies to navigate the cost pressures.”
The company’s Home Care division reported a sales increase to Rs 5,737 crores, while Beauty & Wellbeing achieved sales of Rs 3,323 crores. Yet, Personal Care and Foods & Refreshment segments faced marginal declines, with Personal Care revenue dropping to Rs 2,412 crores.
In a bid to reward shareholders, HUL declared an interim dividend of Rs 19 per equity share and a special dividend of Rs 10 per share for FY2025, totalling Rs 29 per equity share. The record date for the dividend is set for 6 November 2024, with the dividend payout scheduled for 21 November 2024. Despite the decline in PAT, HUL’s strong cash flow allowed it to maintain its dividend policy, signalling confidence in its long-term growth strategy.
The FMCG giant remains cautiously optimistic about the future. The company continues to emphasise innovation, digital transformation, and a consumer-centric approach to fuel long-term growth. Commenting on the company’s outlook, MD & CEO Rohit Jawa said: “Our investments in innovation and sustainability are non-negotiable as we focus on both protecting margins and driving top-line growth in the challenging macroeconomic environment.”
Looking forward, HUL’s ability to manage costs and drive sales growth in a competitive market will be crucial. With consumer preferences shifting and economic pressures persisting, the company must stay agile and innovate to regain momentum in the upcoming quarters.
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
