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HUL 2020-21 Annual Report Analysis
Wed, 31 Mar

HUL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HUL Income Statement Analysis

  • Operating income during the year rose 18.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.2% in FY21 as against 24.3% in FY20.
  • Depreciation charges increased by 7.2% and finance costs decreased by 0.8% YoY, respectively.
  • Other income declined by 35.1% YoY.
  • Net profit for the year grew by 18.4% YoY.
  • Net profit margins during the year grew from 17.0% in FY20 to 17.0% in FY21.

HUL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 397,830 470,290 18.2%
Other income Rs m 6,320 4,100 -35.1%
Total Revenues Rs m 404,150 474,390 17.4%
Gross profit Rs m 96,550 113,860 17.9%
Depreciation Rs m 10,020 10,740 7.2%
Interest Rs m 1,180 1,170 -0.8%
Profit before tax Rs m 91,670 106,050 15.7%
Tax Rs m 24,110 26,060 8.1%
Profit after tax Rs m 67,560 79,990 18.4%
Gross profit margin % 24.3 24.2
Effective tax rate % 26.3 24.6
Net profit margin % 17.0 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HUL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 111 billion as compared to Rs 93 billion in FY20, thereby witnessing an increase of 19.2%.
  • Current assets rose 15% and stood at Rs 142 billion, while fixed assets rose 621% and stood at Rs 545 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 687 billion as against Rs 199 billion during FY20, thereby witnessing a growth of 246%.

HUL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 82,140 476,690 480.3
 
Current Liabilities Rs m 93,170 111,030 19.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 198,690 687,410 246.0
 
Current assets Rs m 123,030 142,010 15.4
Fixed Assets Rs m 75,660 545,400 620.9
Total Assets Rs m 198,690 687,410 246.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HUL Cash Flow Statement Analysis

  • HUL's cash flow from operating activities (CFO) during FY21 stood at Rs 92 billion, an improvement of 20.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -15 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -93 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -14 billion from the Rs 26 billion net cash flows seen during FY20.

HUL Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 76,230 91,630 20.2%
Cash Flow from Investing Activities Rs m 17,910 -15,280 -
Cash Flow from Financing Activities Rs m -68,190 -93,090 -
Net Cash Flow Rs m 25,950 -13,740 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HUL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.0, an improvement from the EPS of Rs 31.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,430.8, stands at 71.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 12.0 times, while the price to sales ratio stands at 12.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 58.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 183.8 200.2
TTM Earnings per share Rs 31.2 34.0
Diluted earnings per share Rs 28.8 34.0
Price to Cash Flow x 69.6 58.5
TTM P/E ratio x 80.1 71.4
Price / Book Value ratio x 52.2 11.1
Market Cap Rs m 4,287,792 5,305,677
Dividends per share (Unadj.) Rs 25.0 40.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HUL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY21, from 1.3x during FY20. 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 improved and stood at 91.6x during FY21, from 78.7x during FY20. 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 16.8% during FY21, from 82.2% during FY21. 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 declined and down at 22.5% during FY21, from 113.0% during FY20. 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 11.8% during FY21, from 34.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.3 1.3
Debtors’ Days Days 1 1
Interest coverage x 78.7 91.6
Debt to equity ratio x 0.0 0.0
Return on assets % 34.6 11.8
Return on equity % 82.2 16.8
Return on capital employed % 113.0 22.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HUL Share Price Performance

Over the last one year, HUL share price has moved up from Rs 2,298.2 to Rs 2,430.8, registering a gain of Rs 132.7 or around 5.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of HUL?

HUL currently trades at Rs 2,268.3 per share. You can check out the latest share price performance of HUL here...

What was the revenue of HUL in FY21? How does it compare to earlier years?

The revenues of HUL stood at Rs 474,390 m in FY21, which was up 17.4% compared to Rs 404,150 m reported in FY20.

HUL's revenue has grown from Rs 310,240 m in FY17 to Rs 474,390 m in FY21.

Over the past 5 years, the revenue of HUL has grown at a CAGR of 11.2%.

What was the net profit of HUL in FY21? How does it compare to earlier years?

The net profit of HUL stood at Rs 79,990 m in FY21, which was up 18.4% compared to Rs 67,560 m reported in FY20.

This compares to a net profit of Rs 60,600 m in FY19 and a net profit of Rs 52,270 m in FY18.

Over the past 5 years, HUL net profit has grown at a CAGR of 15.5%.

What does the cash flow statement of HUL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HUL reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 91,630 m as compared to Rs 76,230 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -15,280 m as compared to Rs 17,910 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -93,090 m as compared to Rs -68,190 m in FY20.

Here's the cash flow statement of HUL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations51,85060,59058,00076,23091,630
From Investments-11,730-10,630-4,38017,910-15,280
From Financial Activity-42,140-49,750-53,900-68,190-93,090
Net Cashflow-2,020210-28025,950-13,740

What does the Key Ratio analysis of HUL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HUL reveals:

  • Operating profit margins witnessed a fall and stood at 24.2% in FY21 as against 24.3% in FY20.
  • Net profit margins grew from 17.0% in FY20 to 17.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of HUL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)21.421.422.024.324.2
Net Profit Margin (%)14.615.015.417.017.0
Debt to Equity Ratio (x)0.00.00.00.00.0

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