Hindustan Unilever (HUVR) has reported broadly an in-line performance in 3QFY20 with betterthan-expected operating performance. However, its underlying volume growth at 5% YoY continued to remain sluggish (broadly in-line with our 4% estimate), as demand environment continued to remain weak, marked with sharp slowdown in rural and discretionary spend. Pricing declined by 1% YoY led by: (1) impact of price cuts undertaken in personal wash category; (2) negative leverage due to slowdown in Skin-care portfolio; and (3) pricing actions relating to general competition. Healthy improvement in margin was the key quarterly takeaway, led by continued cost saving measures. Historically, HUVR has demonstrated its ability to tide over consumption slowdown with focus on driving premiumisation, innovation and efficient supply...