HINDUSTAN UNILEVER

FINANCIAL ANALYSIS OF HUL for the period 2010-2011

Presented By GROUP 5 Abhishek Khanna(uh11005) Gayatri Priyadarsini(uh11017) Monalisha (uh11029) Sarthak Bagadia(uh11041) Swati Chaudhary(uh11053)

INTRODUCTION TO HUL
Hindustan Unilever Limited (HUL) is India's largest FMCG Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.

Over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India.

 Came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.

On any given day, two billion people use Unilever products to look good, feel good and get more out of life.
It is headquartered in Mumbai and has an employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people The company was renamed in June 2007 as Hindustan Unilever Limited.

Important Financial Information

Hindustan Unilever had last split the face value of its shares from Rs 10 to Rs 1 in 2000 No. of Equity Shares Subscribed 2,159,471,968 (2.16 billion) Share price Rs.394.95 Net Sales Rs. 19,401 Crores Net Profit Rs. 2,306 Crores EPS (Basic) Rs. 10.58 EVA Rs. 1,750 Crores

Profit and Loss Account

REFER TO EXCEL SHEET

Cash Flow Statement

Balance Sheet
REFER TO EXCEL SHEET

Horizontal Analysis Cash Flow Statement

PERCENTAGE DIFFERENCE
150.00 111.87 100.00 50.00 0.00 -50.00 -100.00 -150.00 Net Cash From Operating Activities -44.92 Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities -4.47 %age Difference Net (decrease)/increase In Cash and Cash Equivalents

-200.00
-250.00 -300.00 -350.00 -320.08

Horizontal Analysis PROFIT AND LOSS STATEMENT

PERCENTAGE DIFFERENCE
18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% HORIZONTAL ANALYSIS 11.57% 15.54%

13.54%

4.72% 3.55% 2.73%

4.00%
2.00% 0.00% Sales Turnover Total Income Total Expenses

PBDIT

Profit Before Tax

Reported Net Profit

Horizontal Analysis Balance Sheet

PERCENTAGE DIFFERENCE
2.5 2 1.5 1 0.5 0.019508268 0 Networth -0.5 -1 -1.5 -2 Total Debt Total Liabilities Net Block Investments HORIZONTAL ANALYSIS Net Current Assets Total Assets 0.326070366 1.950826779 1.950826779

-0.268970318

-1.937078531

-2.5

VERTICAL ANALYSIS BALANCE SHEET

2 Capital 37 Reserves and surplus Deferred tax liabilities

LIABILITIES

Minority Interests
59 Unsecured loans Current Liabilities 02

0 6 21 17 3

Gross block with depreciation Capital work-in-progress Investments Deferred Tax Assets Inventories

ASSETS---->

11

Sundry debtors Cash and bank balances

4
28

Other current assets Loans and advances

90 80 70 60 50 40 30 20 10 0 1 2

2010 Expense=83.3% PBDIT=16.65%

2011 Expense=84.8% PBDIT=15.2%

TREND ANALYSIS
Sales Turnover
25,000.00

20,000.00

15,000.00

Sales Turnover 10,000.00

5,000.00

0.00 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011

Profit Before Tax

3,500.00

3,000.00

2,500.00

2,000.00 Profit Before Tax 1,500.00

1,000.00

500.00

0.00 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011

Liquidity Ratios
2010 2011

29.24

24.28

8.99 7.91

8.99 7.91 5.35 5.63 7.66

8.31 5.35 5.63

0.84 0.86 Current Ratio

0.46 0.43 Quick Ratio Inventory Turnover Debtors Turnover Ratio Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio

Profitability Ratios
2010 2011

15.74 14.59 13.53 12.25 12.41 12.29 11.56 14.7

Operating Profit Margin(%)

Profit Before Interest And Tax Margin(%)

Gross Profit Margin(%)

Net Profit Margin(%)

Comparison With Competitors

-Major Competitors Include Gillette Dabur Marico P&G

Profitability Ratios(2011)
18 16.64 16 14.62 14 12 10 8 6 4 2 0 Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) P&G Marico Gross Profit Margin(%) HUL Net Profit Margin(%) 13.53 14.43 13.3 12.25 13.44 12.41 11.56 14.54 13.29

13.93

Liquidity Ratios 2011

0 Debt Equity Ratio 0 0.63

0.43 Quick Ratio 1.7 2.16

0.86

Current Ratio

0.99 2.41 0 0.5 1 HUL Marico 1.5 P&G 2 2.5 3

5.63 Asset Turnover Ratio 3.2 8.31 Total Assets Turnover Ratio 1.7 1.67 6.18

5.63
Fixed Assets Turnover Ratio 3.2 0 1 2 3 HUL Marico 4 P&G 5 6 7 8 9 6.18

40 35 33.54

30
25 20 15 10 5 0 Inventory Turnover Ratio Debtors Turnover Ratio P&G Marico HUL Investments Turnover Ratio 5.98 7.91 5.98 7.91 20.48 21.99 24.28 20.48

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