Hindustan Unilever Ltd (Q3 FY14)

India Infoline News Service | Mumbai |

HUL has identified 13 new segments like handwash, body wash, face wash, tea bags, soups, fabric conditioners, hair conditioners etc as segments of the future.

CMP Rs576, Target Rs597, Upside 1.4%
  • HUL registered 9.4% yoy growth in revenues in line with our expectations at Rs70.4bn led by 10% yoy growth in the domestic FMCG business

  • Underlying volume growth for the quarter stood at ~4% yoy below our expectations of ~5-6%

  • Soaps and Detergents and Personal products segment witnessed a 90bps/40bps expansion in EBIT margins respectively

  • OPM expanded by 50bps to 17.4%, aided by lower raw material and staff cost. Net profit after extraordinary items of Rs230mn increased by ~22% yoy to Rs10.6bn - ahead of our expectations of Rs9.4bn

  • Maintain Market Performer with 9-mth target price of Rs597

Result table (Standalone)
(Rs m)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Net sales
70,378
64,337
9.4
67,472
4.3
Other operational income
1,856
2,211
(16.1)
1,454
27.6
Total income
72,234
66,548
8.5
68,926
4.8
Material cost
(36,601)
(34,191)
7.0
(34,699)
5.5
Personnel cost
(3,477)
(3,427)
1.5
(3,683)
(5.6)
Advertising cost
(9,295)
(8,222)
13.1
(9,540)
(2.6)
Other overheads
(10,593)
(9,821)
7.9
(10,151)
4.4
Operating profit
12,268
10,888
12.7
10,853
13.0
OPM (%)
17.4
16.9
51 bps
16.1
135 bps
Depreciation
(644)
(593)
8.7
(639)
0.8
Interest
(182)
(75)
141.7
(63)
189.8
Other income
1,427
1,337
6.7
1,510
(5.5)
PBT
12,868
11,557
11.3
11,661
10.4
Tax
(2,475)
(2,771)
(10.7)
(2,857)
(13.4)
Effective tax rate (%)
19.2
24.0
-
24.5
-
Adjusted PAT
10,393
BSE 1,329.40 5.75 (0.43%)
NSE 1,328.40 6.80 (0.51%)

***Note: This is a NSE Chart

 

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