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HINDUSTAN UNILEVER 2023-24 Annual Report Analysis

Fri, 24 May

HINDUSTAN UNILEVER has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HINDUSTAN UNILEVER Income Statement Analysis

• Operating income during the year rose 2.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.7% in FY24 as against 23.2% in FY23.
• Depreciation charges increased by 6.9% and finance costs increased by 193.0% YoY, respectively.
• Other income grew by 58.4% YoY.
• Net profit for the year grew by 1.4% YoY.
• Net profit margins during the year declined from 16.7% in FY23 to 16.6% in FY24.

HINDUSTAN UNILEVER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	605,800	618,960	2.2%
Other income	Rs m	5,120	8,110	58.4%
Total Revenues	Rs m	610,920	627,070	2.6%
Gross profit	Rs m	140,840	146,650	4.1%
Depreciation	Rs m	11,380	12,160	6.9%
Interest	Rs m	1,140	3,340	193.0%
Profit before tax	Rs m	133,440	139,260	4.4%
Tax	Rs m	32,010	36,440	13.8%
Profit after tax	Rs m	101,430	102,820	1.4%
Gross profit margin	%	23.2	23.7
Effective tax rate	%	24.0	26.2
Net profit margin	%	16.7	16.6

For Investors: Our Big Prediction

HINDUSTAN UNILEVER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 129 billion as compared to Rs 120 billion in FY23, thereby witnessing an increase of 7.1%.
• Current assets rose 25% and stood at Rs 213 billion, while fixed assets rose 2% and stood at Rs 572 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 785 billion as against Rs 731 billion during FY23, thereby witnessing a growth of 7%.

HINDUSTAN UNILEVER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	503,040	512,180	1.8
Current Liabilities	Rs m	120,280	128,760	7.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	730,770	784,890	7.4
Current assets	Rs m	169,860	213,120	25.5
Fixed Assets	Rs m	560,790	571,650	1.9
Total Assets	Rs m	730,770	784,890	7.4

HINDUSTAN UNILEVER Cash Flow Statement Analysis

• HINDUSTAN UNILEVER's cash flow from operating activities (CFO) during FY24 stood at Rs 155 billion, an improvement of 54.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -53 billion, an improvement of 256.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -100 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -4 billion net cash flows seen during FY23.

HINDUSTAN UNILEVER Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	99,910	154,690	54.8%
Cash Flow from Investing Activities	Rs m	-14,940	-53,240	-
Cash Flow from Financing Activities	Rs m	-89,530	-100,340	-
Net Cash Flow	Rs m	-4,460	1,110	-

Current Valuations for HINDUSTAN UNILEVER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.8, an improvement from the EPS of Rs 43.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,380.7, stands at 54.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 9.0 times.
• The company's price to cash flow (P/CF) ratio stood at 51.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	257.8	263.4
TTM Earnings per share	Rs	43.2	43.8
Diluted earnings per share	Rs	43.2	43.8
Price to Cash Flow	x	53.3	51.0
TTM P/E ratio	x	59.3	54.4
Price / Book Value ratio	x	11.2	11.4
Market Cap	Rs m	5,614,172	5,862,818
Dividends per share (Unadj.)	Rs	39.0	42.0

Ratio Analysis for HINDUSTAN UNILEVER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 42.7x during FY24, from 118.1x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 20.1% during FY24, from 20.2% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 27.8% during FY24, from 26.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 13.5% during FY24, from 14.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.4	1.7
Debtors’ Days	Days	2	2
Interest coverage	x	118.1	42.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.0	13.5
Return on equity	%	20.2	20.1
Return on capital employed	%	26.8	27.8

To see how HINDUSTAN UNILEVER has performed over the last 5 years, please visit here.

HINDUSTAN UNILEVER Share Price Performance

Over the last one year, HINDUSTAN UNILEVER share price has moved down from Rs 2,612.6 to Rs 2,380.7, registering a loss of Rs 232.0 or around 8.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 20,098.7 (up 0.2%). Over the last one year it has moved up from 17,773.8 to 20,098.7, a gain of 2,325 points (up 13.1%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for HINDUSTAN UNILEVER and quarterly results for HINDUSTAN UNILEVER)