Royalty hike hit to worry Dalal Street even as HUL stays resilient

Under the new terms, the royalty is set to increase 80 basis points (0.8 percentage points) in a staggered way from 2.65% of revenue to 3.45% over a period of three years. Considering the consolidated revenue of 2021-22, an 80 bps increase in royalty on ₹51,400 crore translates to around ₹400 crore. This, compared to the net profit of ₹9,000 crore, is not an insignificant amount.

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