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HIND. UNILEVER 2017-18 Annual Report Analysis

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HIND. UNILEVER 2017-18 Annual Report Analysis
Thu, 9 Aug

HIND. UNILEVER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HIND. UNILEVER Income Statement Analysis

  • Operating income during the year rose 7.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.1% in FY18 as against 19.1% in FY17.
  • Depreciation charges and finance costs increased by 20.4% YoY and 25.7% YoY, respectively.
  • Other income grew by 4.1% YoY.
  • Net profit for the year grew by 16.1% YoY.
  • Net profit margins during the year grew from 13.4% in FY17 to 14.5% in FY18.

HIND. UNILEVER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 331,620 355,450 7.2%
Other income Rs m 3,690 3,840 4.1%
Total Revenues Rs m 335,310 359,290 7.2%
Gross profit Rs m 63,400 74,990 18.3%
Depreciation Rs m 4,320 5,200 20.4%
Interest Rs m 350 260 -25.7%
Profit before tax Rs m 62,420 73,370 17.5%
Tax Rs m 19,770 20,790 5.2%
Profit after tax Rs m 45,020 52,250 16.1%
Gross profit margin % 19.1 21.1
Effective tax rate % 31.7 28.3
Net profit margin % 13.4 14.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HIND. UNILEVER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 89 billion as compared to Rs 77 billion in FY17, thereby witnessing an increase of 15.2%.
  • Current assets rose 15% and stood at Rs 117 billion, while fixed assets rose 7% and stood at Rs 50 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 179 billion as against Rs 157 billion during FY17, thereby witnessing a growth of 14%.

HIND. UNILEVER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 67,440 72,810 8.0
 
Current Liabilities Rs m 77,140 88,870 15.2
Long-term Debt Rs m 2,770 0 -100.0
Total Liabilities Rs m 157,060 178,620 13.7
 
Current assets Rs m 101,720 116,600 14.6
Fixed Assets Rs m 46,480 49,890 7.3
Total Assets Rs m 157,060 178,620 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HIND. UNILEVER Cash Flow Statement Analysis

  • HIND. UNILEVER's cash flow from operating activities (CFO) during FY18 stood at Rs 61 billion, an improvement of 17.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -11 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -50 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 210 million from the Rs -2 billion net cash flows seen during FY17.

HIND. UNILEVER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 51,850 60,640 17.0%
Cash Flow from Investing Activities Rs m -11,730 -10,680 -
Cash Flow from Financing Activities Rs m -42,140 -49,750 -
Net Cash Flow Rs m -2,020 210 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HIND. UNILEVER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.1, an improvement from the EPS of Rs 20.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,751.1, stands at 69.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 34.4 times, while the price to sales ratio stands at 7.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 66.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 153.2 164.2
TTM Earnings per share Rs 20.8 24.1
Diluted earnings per share Rs 20.8 24.1
Price to Cash Flow x 76.8 66.0
TTM P/E ratio x 69.1 69.1
Price / Book Value ratio x 27.9 34.4
Market Cap Rs m 3,789,885 3,789,752
Dividends per share (Unadj.) Rs 17.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HIND. UNILEVER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.3x during FY17. 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 283.2x during FY18, from 179.3x during FY17. 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 improved and stood at 71.8% during FY18, from 66.8% during FY18. 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 100.7% during FY18, from 92.8% during FY17. 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 improved and stood at 29.4% during FY18, from 28.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.3
Debtors’ Days Days 12 13
Interest coverage x 179.3 283.2
Debt to equity ratio x 0.0 0.0
Return on assets % 28.9 29.4
Return on equity % 66.8 71.8
Return on capital employed % 92.8 100.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HIND. UNILEVER Share Price Performance

Over the last one year, HIND. UNILEVER share price has moved up from Rs 1,183.7 to Rs 1,751.1, registering a gain of Rs 567.4 or around 47.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,176.0 (up 0.4%). Over the last one year it has moved up from 9,862.7 to 12,176.0, a gain of 2,313 points (up 23.5%).

Overall, the S&P BSE SENSEX is up 18.8% over the year.

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

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