HLL is likely to take a hit of over Rs 100 crore on its bottomline, analysts tracking the FMCG sector said. In calendar year 2003, detergents and soaps contributed Rs 4,379 crore to HLL’s turnover of Rs 10,000 crore.
The hit is the fallout of the price war on the detergents market turf.
HLL executives declined to comment on this. In calendar year 2003, HLL’s margins in the soaps and detergents business fell by 100 basis points owing to increased competition. The current price cuts will have an even more severe impact on margins, say analysts.
The HLL share price lost nine per cent over the last two trading sessions to close at Rs 158 on the BSE yesterday.