HUL Announces Quarterly Results (2QFY21); Net Profit Up 8.7%

Wed, 21 Oct

HUL has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

HUL Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	98,520	105,600	114,420	8.4%	16.1%
Other income	Rs m	1,800	1,560	1,510	-3.2%	-16.1%
Turnover	Rs m	100,320	107,160	115,930	8.2%	15.6%
Expenses	Rs m	74,090	79,160	85,730	8.3%	15.7%
Gross profit	Rs m	23,960	25,260	27,880	10.4%	16.4%
Depreciation	Rs m	2,370	2,420	2,490	2.9%	5.1%
Interest	Rs m	310	290	290	0.0%	-6.5%
Profit before tax	Rs m	23,080	24,110	26,610	10.4%	15.3%
Tax	Rs m	4,600	5,300	6,520	23.0%	41.7%
Profit after tax	Rs m	18,480	18,810	20,090	6.8%	8.7%
Gross profit margin	%	24.3	23.9	24.4
Effective tax rate	%	19.9	22.0	24.5
Net profit margin	%	18.4	17.6	17.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 16.1% on a year-on-year (YoY) basis. The expenses were up by 15.7% YoY during the same period.
• The company's operating profit increased by 16.4% YoY during the quarter. Consequently, operating profit margins remained same and stood at 24.4% in 2QFY21.
• Depreciation charges increased by 5.1% and finance costs declined by 6.5% YoY, respectively.
• Other income declined by 16.1% YoY during the quarter.
• Net profit for the quarter increased by 8.7% YoY. Net profit margins during the quarter declined from 18.4% in 2QFY20 to 17.3% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 8.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 8.3% QoQ during the same period.
• The company's operating profit increased by 10.4% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 24.4% in 2QFY21 as against 23.9% in 1QFY20.
• Net profit for the quarter increased by 6.8% QoQ, while net profit margins declined from 17.6% in 1QFY20 to 17.3% in 2QFY21.

To see how HUL has performed over the last eight quarters,please visit here.

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HUL Share Price Performance

Over the last one year, HUL share price has moved up from Rs 2,106.2 to Rs 2,160.5, registering a Gain of Rs 54.3 or around 2.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,073.7 (down 0.2%). Over the last one year it has moved down from 11,929.2 to 11,073.7, a gain of 855 points (down 7.2%).

Overall, the S&P BSE SENSEX is up 5.0% over the year.

Current Valuations

At the current price of Rs 2,160.5, the price to earnings (P/E) ratio of HUL stands at 66.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 56.8 times.