Hindustan unilever- First Cut Q2FY14
Rajesh Desai
Dear Sir/Madam,
Hindustan Unilever (HUL) announced its Q2 FY14 results on 26 Oct 2013
Q2 FY14 Result Analysis
The company’s Net Sales increased by 10% YOY to INR6747 crore YOY (which was above Estimates) and its EBITDA increased by 11% YOY to INR1085 crore. EBITDA Margin of the company increased from 15.5% to 15.7% YOY. Volume Growth came at 5% which was inline with estimates. Adjusted PAT (Excl EO) increased by 9% YOY to INR880 crore. PAT incl EO increased by 13% to INR914crore YOY.
Soaps and Detergent segment registered a sales growth of 6% with EBIT growth of 4%. Personal products grew by 12% YOY with EBIT Growth of 5% -Vaseline and Dove lotions did particularly well, Lakme registered one of its strongest quarters of innovation led growth. Beverages registered a sales growth of 16% YOY and EBIT growth of 37% YOY and margin improvement from 14.3% to 17.0%.
At the Current level of INR594, the stock is trading at a P/E of 35.7x its FY14E EPS of 16.6. We Raise the Stock from Neutral to ‘BUY’ with the Same Price Target of INR676 where we had earlier advised Profit Booking.
DESCRIPTION | Sep-13 |
Jun-13 |
Sep-12 |
QOQ |
YOY |
H2 FY14 |
H2 FY13 |
% change |
|
Net Sales |
6747 |
6687 |
6155 |
1% |
10% |
13435 |
12406 |
8% |
|
OPI |
145 |
122 |
155 |
|
|
267 |
284 |
|
|
Total Income |
6893 |
6809 |
6311 |
1% |
9% |
13702 |
12690 |
8% |
|
Total Expenditure |
5807 |
5723 |
5334 |
|
|
11531 |
10746 |
|
|
PBIDT (Excl OI) |
1085 |
1086 |
977 |
0% |
11% |
2171 |
1943 |
12% |
|
EBITDA (%) |
15.7% |
15.9% |
15.5% |
|
|
15.8% |
15.3% |
|
|
Other Income |
151 |
177 |
149 |
|
|
328 |
367 |
|
|
Operating Profit |
1236 |
1262 |
1125 |
|
|
2499 |
2311 |
|
|
Interest |
6 |
6 |
6 |
|
|
13 |
12 |
|
|
PBDT |
1230 |
1256 |
1119 |
|
|
2486 |
2299 |
|
|
Depreciation |
64 |
66 |
58 |
|
|
130 |
115 |
|
|
PBT |
1166 |
1190 |
1061 |
|
|
2356 |
2184 |
|
|
Tax (Adjusted) |
286 |
277 |
256 |
|
|
562 |
514 |
|
|
Profit After Tax |
880 |
913 |
805 |
-4% |
9% |
1793 |
1669 |
7% |
|
PAT (%) |
12.8% |
13.4% |
12.8% |
|
|
13.1% |
13.2% |
|
|
Exceptional Items |
33 |
106 |
2 |
|
|
140 |
606 |
|
|
Tax Adjustment |
0 |
0 |
0 |
|
|
0 |
-138 |
|
|
PAT incl EO |
914 |
1019 |
807 |
-10% |
13% |
1933 |
2138 |
-10% |
|
|
|
|
|
|
|
|
|
|
|
Equity Capital |
216.26 |
216.2 |
216.15 |
|
|
216.26 |
216.19 |
|
|
Face Value (In Rs) |
1 |
1 |
1 |
|
|
1 |
1 |
|
|
No. of shares |
216.26 |
216.2 |
216.15 |
|
|
216.26 |
216.19 |
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
4.07 |
4.22 |
3.72 |
-4% |
9% |
8.29 |
7.72 |
7% |
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
CA. Rajesh Desai