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HUL: A Slow End to a Dull Year... - Views on News from Equitymaster
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HUL: A Slow End to a Dull Year...
May 9, 2016 | Updated on May 11, 2016

Hindustan Unilever (HUL) declared results for the quarter and year ended March 2016. The company's revenues were up by 4% YoY during the quarter, while profits grew by 7% YoY. Here is our analysis of the results:

Performance summary
  • Revenues rise by 4% YoY in 4QFY16.
  • Operating profits rise by 11% YoY as margins expand to 18.5% from 17.2% last year.
  • Profit before tax rises by 9% YoY; net profits up by 7% YoY due to lower extraordinary income reported in the latest quarter.
  • For full year FY16, the company's revenues and profit before tax (barring extraordinary items) rise by 4% YoY and 7% respectively.
  • Board declares interim dividend of Rs 9.5 per share (on face value of Re 1 per share). Total dividend for the year stands at Rs 16 per share for the full year, translating to a yield of 1.9%.
  • Financial snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Net sales 76,756 79,457 3.5% 308,056 319,872 3.8%
    Expenditure 63,575 64,788 1.9% 255,974 262,573 2.6%
    Operating profit (EBIDTA) 13,182 14,668 11.3% 52,082 57,299 10.0%
    EBDITA margin (%) 17.2% 18.5% 16.9% 17.9%
    Other income 984 823 -16.4% 6,184 5,006 -19.0%
    Depreciation 705 875 24.1% 2,867 3,208 11.9%
    Interest cost 0 0 168 2 -98.9%
    Exceptional items 1,794 430 -76.1% 6,643 -390
    Profit before tax 15,255 15,045 -1.4% 61,874 58,706 -5.1%
    Tax 5,074 4,149 -18.2% 18,722 17,882 -4.5%
    Effective tax rate 33% 28% 30% 30%
    Profit after tax/(loss) 10,181 10,896 7.0% 43,153 40,824 -5.4%
    Net profit margin (%) 13.3% 13.7% 14.0% 12.8%
    No. of shares (m) 2,163.5 2,163.9
    Diluted earnings per share (Rs)* 19.0
    Price to earnings ratio (x) 44.4

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