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Financially Yours Assignment

The document provides financial information for Hindustan Unilever Limited for the fiscal year ending March 31, 2020. Some key highlights include: - Net revenue was INR 38,785 crores - Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was INR 9,600 crores - Earnings per share (Basic) was INR 31.13 - Cash from operations was over INR 9,500 crores - Total assets increased 9.72% to INR 196 billion while liabilities rose 15.01% to INR 100 billion - Net profit grew 6.69% year-over-year to INR 6,738 crores

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Siddhant Singh
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131 views6 pages

Financially Yours Assignment

The document provides financial information for Hindustan Unilever Limited for the fiscal year ending March 31, 2020. Some key highlights include: - Net revenue was INR 38,785 crores - Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was INR 9,600 crores - Earnings per share (Basic) was INR 31.13 - Cash from operations was over INR 9,500 crores - Total assets increased 9.72% to INR 196 billion while liabilities rose 15.01% to INR 100 billion - Net profit grew 6.69% year-over-year to INR 6,738 crores

Uploaded by

Siddhant Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Financially Yours Assignment- 2

Financial Statement of Hindustan Unilever Limited (HUL) for the year ending 31 March
2020-

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As per the Annual Report of the Company for the year 2019-20-

Net Revenue INR 38,785 crores


EBITDA INR 9,600 crores
EPS ( Basic) INR 31.13
Cash from Operations INR 9,500 crores+
HUL Balance Sheet Analysis

• The company's current liabilities during FY20up at Rs 100 billion as compared to Rs 87 billion in FY19,
thereby witnessing an increase of 15.01%.
• Current assets rose 4.69% and stood at Rs 119 billion, while fixed assets rose 18.53% and stood at Rs 77
billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 196 billion as against Rs 179 billion during
FY19, thereby witnessing a growth of 9.72%.

HUL Income Statement Analysis

• Operating income during the year rose 1.47% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.17% YoY during the fiscal.
• Operating profit margins witnessed a slight rise and up at 22.33% in FY20 as against 21.22% in FY19.
• Depreciation charges increased by 79.01% and finance costs increased by 16.56% YoY, respectively.
• Other income grew by 10.39% YoY.
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• Net profit for the year grew by 6.69% YoY.
• Net profit margins during the year grew from 15.79% in FY19 to 17.37% in FY20.

HUL Cash Flow Statement Analysis

• HUL's cash flow from operating activities (CFO) during FY20 stood at Rs 73 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs 19 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -67 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs 26billion from the Rs 20 million net
cash flows seen during FY19.

Current Valuations for HUL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.13, an improvement
from the EPS of Rs 27.89 recorded last year.
• The price to earnings (P/E) ratiostands at 73.67 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 61.93 times.
• The company's price to cash flow (P/CF) ratio stood at 64.67 times its end-of-year operating cash flow
earnings.

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Financial Ratios-
1) Profitability Ratios-
1. Return Ratios
• Return on Equity= Net Income/Shareholder’ Equity = 6738/8031 = 0.8390
• Return of Assets= Net Income/Net Assets = 6738/(7691-938)=6738/6753=0.99778
• Return on Capital Employed= EBIT/(Total Assets-Current Liabilities)
=9289/(7399+869+418+418)=2.15312
2. Margin Ratios
• Gross Margin Ratio= Gross Profit/Total Revenue = 9289/30229 = 0.30729
• Operating Profit margin = (Net EBIT ⁄ Total revenue) x 100 =(9092/39518)*100 =23.0072%
• Net Profit Margin= Net Income/Total Revenue= 6738/39518 =0.1705
3. Leverage Ratios
• Debt Equity Ratio= (Short Term Debt + Long Term Debt + Other Fixed Payments)/
Shareholder’s Equity = 1.44
• Equity Ratio= Shareholder’s Equity/Total Assets = 8031/19602 = 0.4097
• Debt Ratio= (Short Term + Long Term Debt)/ Total Assets = 11571/19602 = 0.59030
2) Liquidity Ratios-
1. Asset Ratios
• Current Ratio= Current Assets/Current Liabilities = 9272/(7399+869+418+418)= 1.0185
• Quick Ratio= ( Current Assets-Inventory )/ Current Liabilities=
(9272-2636) /(7399+869+418+418)=6636/9104= 0.72891
• Cash Ratio= Cash and Cash Equivalents/ Current Liabilities =
(1887+3130)/(7399+869+418+418)= 0.5566
2. Earnings Ratio
• Times Interest Earned Ratio = Earnings Before Interest and Tax/Interest Expense=
9289/2354=3.9460
3. Cash Flow Ratio
• Operating Cash Flow Ratio = Cash Flow from Operations/Current Liabilities =
3130/(7399+869+418+418)=0.34380

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