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HUL: Robust sales & margins rise

Apr 29, 2013 | Updated on Oct 30, 2019

Hindustan Unilever Limited has announced its fourth quarter financial results of 2012-2013 (4QFY13). The company has reported 12.5% YoY increase in sales and 14.7% YoY rise in net profits. Here is our analysis of the results.

Performance summary
  • HUL clocked 12% rise in revenues led by 13% increase in the domestic consumer business for the March 2013 quarter. However, underlying volume growth in the domestic business remained tepid at around 6%. For the full year FY13, topline increased by 17%.
  • Despite high ad-spends, the company has been able to post incremental margins during the quarter backed by easing raw material prices and controlled other expenses. HUL's operating margin in FY13 expanded by 0.6% to 15.5%.
  • Net profit grew by a subdued 14.7% compared to a 17% rise in operating profit due to a 24% jump in the tax outgo. During FY13, earnings surged by 41% aided by a 118% surge in the other income and profits earned from sale of property.
Standalone financial performance snapshot
Rs(m) 4QFY12 4QFY13 Change FY12 FY13 Change
Revenues 57,659 64,658 12.1% 221,164 258,102 16.7%
Expenditure 49,325 54,940 11.4% 188,250 218,065 15.8%
Operating profit (EBDITA) 8,334 9,718 16.6% 32,913 40,038 21.6%
EBDITA margin (%) 14.5% 15.0%   14.9% 15.5%  
Other income 700 1,058 51.3% 2,783 6,069 118.1%
Interest 2 60 2905.0% 12 252 1928.2%
Depreciation 571 614 7.6% 2,183 2,360 8.1%
Profit before tax 8,461 10,102 19.4% 33,502 43,495 29.8%
Extraordinary inc/(exp) 281 94   1,189 6,084 411.8%
Tax 1,876 2,324 23.9% 7,776 11,612 49.3%
Profit after tax/(loss) 6,866 7,872 14.7% 26,914 37,967 41.1%
Net profit margin (%) 11.9% 12.2%   12.2% 14.7%  
No. of shares (m)         2162.5  
Diluted earnings per share (Rs)*         17.6  
Price to earnings ratio (x)*         33.3  

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