About the Stock
Hindustan Unilever Limited (HUL) is an Indian fast-moving consumer goods company based in Mumbai and a subsidiary of the British firm Unilever. The company offers a wide range of products, including foods, beverages, cleaning agents, personal care items, and other consumer staples.
Founded in 1931 as Hindustan Vanaspati Manufacturing Co., HUL underwent a merger of its constituent groups in 1956, resulting in the name Hindustan Lever Limited. In June 2007, the company was renamed Hindustan Unilever Limited.
Business Model
- Product Range: Offers a diverse portfolio, including foods, beverages, cleaning agents, personal care products, and other consumer staples.
- Market Segmentation: Targets various consumer segments, focusing on both urban and rural markets in India.
- Brand Strategy: Leverages strong brand equity with popular products like Dove, Lifebuoy, and Knorr to drive consumer loyalty.
- Distribution Network: Maintains an extensive distribution system, reaching millions of retail outlets and ensuring product availability across India.
- Sustainability Focus: Implements sustainable practices in sourcing, production, and packaging to enhance environmental responsibility.
- Innovation and R&D: Invests in research and development to innovate new products and improve existing ones based on consumer needs.
- Digital Transformation: Embraces digital marketing and e-commerce to reach consumers and enhance engagement in the digital space.
| Company Valuation | |
| Sector | FMCG – Non Food |
| NSE | HINDUNILVR |
| BSE | 500696 |
| Market Capitalization | Rs 6,86,539 Crore (As of Oct 03, 2024) |
| Book Value Per Share | Rs 229 |
| Face Value | Rs 1 |
| 52 week H/L | 3,035 / 2,170 |
| Dividend Yield (%) | 1.44 % |
| Shareholding Pattern | |||
| Particulars | Dec-23 | Mar-24 | Jun-24 |
| Foreign Promoters % | 61.9 | 61.9 | 61.9 |
| Indian Promoters % | 0 | 0 | 0 |
| DIIs % | 12.35 | 13.24 | 14.13 |
| FIIs % | 13.65 | 12.67 | 11.87 |
| Others % | 12.1 | 12.19 | 12.1 |
| Ratios (Consolidated) | ||||
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| ROCE % | 38.36 | 24.77 | 27.06 | 28.06 |
| ROE % | 28.63 | 18.37 | 20.42 | 20.26 |
| ROA % | 18.05 | 12.76 | 14.13 | 13.57 |
| Interest Coverage Ratio | 91.64 | 113.02 | 118.06 | 42.69 |
| D/E | 0 | 0 | 0 | 0 |
| P/B | 11.98 | 9.81 | 11.95 | 10.41 |
| Balance Sheet (Consolidated Figures in Rs. Crores.) | ||||
| (Year-end March) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Share Capital | 235 | 235 | 235 | 235 |
| Reserves | 47,434 | 48,826 | 50,069 | 50,983 |
| Borrowings | 0 | 0 | 98 | 13 |
| Other Liabilities | 21,072 | 21,445 | 22,675 | 27,258 |
| Total Liabilities | 68,741 | 70,506 | 73,077 | 78,489 |
| Fixed Assets | 51,460 | 51,473 | 52,678 | 53,744 |
| Capital WIP | 745 | 1,313 | 1,132 | 1,025 |
| Investments (Long Term) | 2 | 2 | 71 | 67 |
| Other Assets | 16,534 | 17,718 | 19,196 | 23,653 |
| Total Assets | 68,741 | 70,506 | 73,077 | 78,489 |
| Profit & Loss (Consolidated Figures in Rs. Crores.) | |||||
| (Year-end March) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | TTM |
| Sales | 47,029 | 52,446 | 60,580 | 61,896 | 62,107 |
| Other Income | 410 | 258 | 512 | 811 | 885 |
| Expenses | 35,404 | 39,589 | 46,430 | 47,233 | 47,365 |
| Operating Profit | 12,035 | 13,115 | 14,662 | 15,474 | 15,627 |
| OPM% | 26 | 25 | 24 | 25 | 25 |
| Interest | 117 | 106 | 114 | 334 | 377 |
| Depreciation | 1,074 | 1,091 | 1,138 | 1,216 | 1,259 |
| Profit Before Tax | 10,605 | 11,874 | 13,345 | 13,926 | 13,986 |
| Tax% | 25 | 25 | 24 | 26 | 26 |
| Net Profit | 7,995 | 8,879 | 10,120 | 10,277 | 10,333 |
| PATM% | 17 | 17 | 17 | 17 | 17 |
| Cash Flows (Consolidated Figures in Rs. Crores.) | ||||
| (Year-end March) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Cash from Operating Activity | 9,163 | 9,048 | 9,991 | 15,469 |
| Cash from Investing Activity | -1,528 | -1,728 | -1,494 | -5,324 |
| Cash from Financing Activity | -9,309 | -8,015 | -8,953 | -10,034 |
| Net Cash Flow | -1,674 | -695 | -456 | 111 |
Q1FY25 Result Update:
- Hindustan Unilever Ltd (HUL) posted a 2.7% increase in standalone net profit, reaching ₹2,538 crore, up from ₹2,472 crore last year.
- Revenue from operations rose 1.3% to ₹15,399 crore, compared to ₹15,148 crore in the same period last year.
- Total expenses for Q1 FY25 were ₹12,385 crore, a 1.8% year-on-year increase.
- Total income increased by 1.81% to ₹15,964 crore.
- EBITDA for the June quarter grew 2.4% to ₹3,606 crore, up from ₹3,521 crore last year.
- Margin improved by 30 basis points to 23.5%, compared to 23.2% in the previous year.
- HUL reported a 4% underlying volume growth in the June quarter, slightly up from three consecutive quarters of 2% growth.
- Volumes jumped 3% in the April-June quarter of the last fiscal year.
| Quarterly Results (Consolidated Figures in Rs. Crores) | |||||
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 |
| Sales | 15,496 | 15,623 | 15,567 | 15,210 | 15,707 |
| Other Income | 183 | 183 | 214 | 231 | 257 |
| Expenses | 11,831 | 11,826 | 11,901 | 11,675 | 11,963 |
| Operating Profit | 3,848 | 3,980 | 3,880 | 3,766 | 4,001 |
| OPM% | 25 | 25 | 25 | 25 | 25 |
| Interest | 50 | 88 | 91 | 105 | 93 |
| Depreciation | 286 | 297 | 313 | 320 | 329 |
| Profit Before Tax | 3,475 | 3,590 | 3,446 | 3,419 | 3,531 |
| Tax% | 26 | 26 | 27 | 25 | 26 |
| Net Profit | 2,554 | 2,656 | 2,509 | 2,558 | 2,610 |
| PATM% | 16 | 17 | 16 | 17 | 17 |
Conclusion:
In conclusion, Hindustan Unilever Ltd (HUL) demonstrates a strong performance driven by steady revenue growth, improved profitability, and enhanced operational efficiency. The increase in net profit and EBITDA, alongside a rise in margins and underlying volume growth, reflects the company’s resilience in a competitive FMCG landscape. With a solid foundation and strategic focus on innovation, HUL is well-positioned for sustained growth and continued value creation for its shareholders. Overall, HUL’s robust fundamentals indicate a promising outlook for future performance in the market.
