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HUL 2021-22 Annual Report Analysis
Tue, 31 May

HUL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HUL Income Statement Analysis

  • Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.4% in FY22 as against 24.2% in FY21.
  • Depreciation charges increased by 1.6% and finance costs decreased by 9.4% YoY, respectively.
  • Other income declined by 37.1% YoY.
  • Net profit for the year grew by 11.1% YoY.
  • Net profit margins during the year declined from 17.0% in FY21 to 16.9% in FY22.

HUL Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 470,280 524,460 11.5%
Other income Rs m 4,100 2,580 -37.1%
Total Revenues Rs m 474,380 527,040 11.1%
Gross profit Rs m 113,870 128,130 12.5%
Depreciation Rs m 10,740 10,910 1.6%
Interest Rs m 1,170 1,060 -9.4%
Profit before tax Rs m 106,060 118,740 12.0%
Tax Rs m 26,060 29,870 14.6%
Profit after tax Rs m 80,000 88,870 11.1%
Gross profit margin % 24.2 24.4
Effective tax rate % 24.6 25.2
Net profit margin % 17.0 16.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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HUL Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 113 billion as compared to Rs 111 billion in FY21, thereby witnessing an increase of 1.6%.
  • Current assets rose 9% and stood at Rs 155 billion, while fixed assets rose 1% and stood at Rs 550 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 705 billion as against Rs 687 billion during FY21, thereby witnessing a growth of 3%.

HUL Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 476,690 490,610 2.9
 
Current Liabilities Rs m 111,030 112,800 1.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 687,400 705,060 2.6
 
Current assets Rs m 142,170 155,220 9.2
Fixed Assets Rs m 545,230 549,840 0.8
Total Assets Rs m 687,400 705,060 2.6
* 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 FY22 stood at Rs 90 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -17 billion, an improvement of 13.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -80 billion, an improvement of 14% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -7 billion from the Rs -14 billion net cash flows seen during FY21.

HUL Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 91,630 90,480 -1.3%
Cash Flow from Investing Activities Rs m -15,280 -17,280 -
Cash Flow from Financing Activities Rs m -93,090 -80,150 -
Net Cash Flow Rs m -13,740 -6,950 -
* 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 37.8, an improvement from the EPS of Rs 34.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,322.0, stands at 61.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 10.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 56.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 200.2 223.2
TTM Earnings per share Rs 34.0 37.8
Diluted earnings per share Rs 34.0 37.8
Price to Cash Flow x 62.9 56.1
TTM P/E ratio x 71.4 61.4
Price / Book Value ratio x 11.1 11.4
Market Cap Rs m 5,305,677 5,593,085
Dividends per share (Unadj.) Rs 40.5 34.0
* 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 improved and stood at 1.4x during FY22, from 1.3x during FY21. 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 113.0x during FY22, from 91.6x during FY21. 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 18.1% during FY22, from 16.8% during FY22. 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 24.4% during FY22, from 22.5% during FY21. 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 12.8% during FY22, from 11.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.3 1.4
Debtors’ Days Days 1 2
Interest coverage x 91.6 113.0
Debt to equity ratio x 0.0 0.0
Return on assets % 11.8 12.8
Return on equity % 16.8 18.1
Return on capital employed % 22.5 24.4
* 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 down from Rs 2,341.4 to Rs 2,322.0, registering a loss of Rs 19.4 or around 0.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 14,093.3 (down 0.1%). Over the last one year it has moved up from 13,130.7 to 14,093.3, a gain of 963 points (up 7.3%).

Overall, the S&P BSE SENSEX is up 9.2% 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 2,681.1 per share. You can check out the latest share price performance of HUL here...

What was the revenue of HUL in FY22? How does it compare to earlier years?

The revenues of HUL stood at Rs 527,040 m in FY22, which was up 11.1% compared to Rs 474,380 m reported in FY21.

HUL's revenue has grown from Rs 352,410 m in FY18 to Rs 527,040 m in FY22.

Over the past 5 years, the revenue of HUL has grown at a CAGR of 10.6%.

What was the net profit of HUL in FY22? How does it compare to earlier years?

The net profit of HUL stood at Rs 88,870 m in FY22, which was up 11.1% compared to Rs 80,000 m reported in FY21.

This compares to a net profit of Rs 67,560 m in FY20 and a net profit of Rs 60,600 m in FY19.

Over the past 5 years, HUL net profit has grown at a CAGR of 14.2%.

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 decreased in FY22 and stood at Rs 90,480 m as compared to Rs 91,630 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -17,280 m as compared to Rs -15,280 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -80,150 m as compared to Rs -93,090 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations60,59058,00076,23091,63090,480
From Investments-10,630-4,38017,910-15,280-17,280
From Financial Activity-49,750-53,900-68,190-93,090-80,150
Net Cashflow210-28025,950-13,740-6,950

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 down at 24.4% in FY22 as against 24.2% in FY21.
  • Net profit margins declined from 17.0% in FY21 to 16.9% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)21.422.024.324.224.4
Net Profit Margin (%)15.015.417.017.016.9
Debt to Equity Ratio (x)0.00.00.00.00.0

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