Hindustan Unilever- First Cut
Rajesh Desai
Dear Sir/Madam,
Hindustan Unilever (HUL) announced its Q1 FY14 results on 26 July 2013
Q1 FY14 Result Analysis
The company’s Total Income increased by 7% YOY to INR6809 crore YOY and its EBITDA increased by 12% YOY to INR1086 crore. EBITDA Margin of the company increased from 15.2% to 15.9% YOY which was above estimates. Volume Growth came at 4% which was below estimates. Adjusted PAT (Excl EO) increased by 6% YOY to INR913 crore. PAT incl EO decreased by 23% to INR1019crore YOY after taking considering of Exception Item and Taxes.
Soaps and Detergent segment registered a sales growth of 8% with EBIT growth of 14%. Personal products grew by 2% YOY which was disappointing. Beverages registered a sales growth of 16% YOY, EBIT growth of 46% YOY and margin improvement from 14.5% to 18.3% which was encouraging.
We had earlier advised booking profit in the counter at our Target price of INR676 (Buy Call Recommended at INR575). At the Current level of INR661 the stock is trading at a P/E of 40.5x its FY14E EPS of 16.4. We remain Neutral at the current level.
DESCRIPTION | Jun-13 |
Mar-13 |
Jun-12 |
QOQ |
YOY |
|
Net Sales |
6687 |
6367 |
6250 |
5% |
7% |
OPI |
122 |
99 |
129 |
|
|
|
Total Income |
6809 |
6466 |
6379 |
5% |
7% |
Total Expenditure | 5723 |
5494 |
5412 |
|
|
|
PBIDT (Excl OI) |
1086 |
972 |
966 |
12% |
12% |
EBITDA (%) | 15.9% |
15.0% |
15.2% |
|
|
|
Other Income |
177 |
106 |
219 |
|
|
|
Operating Profit |
1262 |
1078 |
1185 |
|
|
|
Interest |
6 |
6.01 |
5 |
|
|
|
PBDT |
1256 |
1072 |
1180 |
|
|
|
Depreciation |
66 |
61 |
58 |
|
|
|
PBT |
1190 |
1010 |
1122 |
|
|
|
Tax (adjusted) |
277 |
232 |
258 |
|
|
|
Profit After Tax (adj) |
913 |
778 |
864 |
17% |
6% |
|
PAT (%) |
13.4% |
12.0% |
13.5% |
|
|
|
Exceptional Items |
106 |
9 |
605 |
|
|
|
Tax Adjustment |
0 |
0 |
-138 |
|
|
|
PAT incl EO |
1019 |
787 |
1331 |
29% |
-23% |
|
|
|
|
|
|
|
Equity Capital |
216.2 |
216.2 |
216.18 |
|
|
|
Face Value (In Rs) |
1 |
1 |
1 |
|
|
|
No. of shares |
216.2 |
216.2 |
216.18 |
|
|
|
|
|
|
|
|
|
|
EPS |
4.22 |
3.60 |
4.00 |
17% |
6% |
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
CA. Rajesh Desai