HINDUSTAN UNILEVER 2024-25 Annual Report Analysis

Mon, 2 Jun

HINDUSTAN UNILEVER has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

HINDUSTAN UNILEVER Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.0% in FY25 as against 23.7% in FY24.
• Depreciation charges increased by 11.4% and finance costs increased by 18.3% YoY, respectively.
• Other income grew by 25.4% YoY.
• Net profit for the year grew by 3.8% YoY.
• Net profit margins during the year grew from 16.6% in FY24 to 16.9% in FY25.

HINDUSTAN UNILEVER Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	618,960	631,210	2.0%
Other income	Rs m	8,110	10,170	25.4%
Total Revenues	Rs m	627,070	641,380	2.3%
Gross profit	Rs m	146,650	151,480	3.3%
Depreciation	Rs m	12,160	13,550	11.4%
Interest	Rs m	3,340	3,950	18.3%
Profit before tax	Rs m	139,260	144,150	3.5%
Tax	Rs m	36,440	37,440	2.7%
Profit after tax	Rs m	102,820	106,710	3.8%
Gross profit margin	%	23.7	24.0
Effective tax rate	%	26.2	26.0
Net profit margin	%	16.6	16.9

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HINDUSTAN UNILEVER Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 165 billion as compared to Rs 129 billion in FY24, thereby witnessing an increase of 28.4%.
• Current assets rose 3% and stood at Rs 220 billion, while fixed assets rose 1% and stood at Rs 578 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 799 billion as against Rs 785 billion during FY24, thereby witnessing a growth of 2%.

HINDUSTAN UNILEVER Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	512,180	493,910	-3.6
Current Liabilities	Rs m	128,790	165,370	28.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	784,890	798,630	1.8
Current assets	Rs m	213,120	220,280	3.4
Fixed Assets	Rs m	571,650	578,120	1.1
Total Assets	Rs m	784,890	798,630	1.8

HINDUSTAN UNILEVER Cash Flow Statement Analysis

• HINDUSTAN UNILEVER's cash flow from operating activities (CFO) during FY25 stood at Rs 119 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs 65 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -131 billion on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 53 billion from the Rs 1 billion net cash flows seen during FY24.

HINDUSTAN UNILEVER Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	154,690	118,860	-23.2%
Cash Flow from Investing Activities	Rs m	-53,240	64,730	-
Cash Flow from Financing Activities	Rs m	-100,340	-131,010	-
Net Cash Flow	Rs m	1,110	52,580	4,636.9%

Current Valuations for HINDUSTAN UNILEVER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.4, an improvement from the EPS of Rs 43.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,372.9, stands at 52.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.3 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 50.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	263.4	268.6
TTM Earnings per share	Rs	43.8	45.4
Diluted earnings per share	Rs	43.8	45.4
Price to Cash Flow	x	46.4	50.5
TTM P/E ratio	x	51.8	52.2
Price / Book Value ratio	x	11.4	12.3
Market Cap	Rs m	5,862,818	6,074,281
Dividends per share (Unadj.)	Rs	42.0	53.0

Ratio Analysis for HINDUSTAN UNILEVER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY25, from 1.7x during FY24. 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 37.5x during FY25, from 42.7x during FY24. 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 21.6% during FY25, from 20.1% during FY25. 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 30.0% during FY25, from 27.8% during FY24. 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 13.9% during FY25, from 13.5% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	1.7	1.3
Debtors’ Days	Days	2	2
Interest coverage	x	42.7	37.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.5	13.9
Return on equity	%	20.1	21.6
Return on capital employed	%	27.8	30.0

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 up from Rs 2,328.7 to Rs 2,372.9, registering a gain of Rs 44.2 or around 1.9%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 20,386.8 (up 0.4%). Over the last one year it has moved up from 19,528.8 to 20,386.8, a gain of 858 points (up 4.4%).

Overall, the S&P BSE SENSEX is up 8.5% over the year.

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