hul group 1
TRANSCRIPT
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ABHINAV MALHOTRA
NISHANT SEHGAL
HIMANSHU BANSAL
SUPRIYA SHARMA
Submitted by
Section : I
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Company Background
Hindustan Unilever Ltd was incorporated as Lever Brothers India Ltdin 1922.
Two Unilever subsidiaries, Hindustan Vanaspati ManufacturingCompany and United Traders, were merged with Lever BrothersIndia in 1956 and the merged entity was rechristened 'HindustanLever Ltd'.
In June 2007, the company's name was changed to 'HindustanUnilever Ltd' to reflect its global identity.
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HUL made a host of acquisitions, mostly global, by parent
company Unilever. Prominent among them were:
1. Tata Oil Mills Company was merged with HUL in 1993.
2. Brooke Bond Lipton India was merged with the company in 1996
3. Lakme Lever, a 50:50 joint venture company for cosmetics, wasfinally sold by Lakme to the company in 1998.
4. Ponds India amalgamated with the company in 1998 afterUnilever globally acquired it in 1996.
5. International Best Foods was acquired in 2001 subsequent to theinternational acquisition of Best Foods, USA by Unilever.
6. in 2003, HUL acquired the cooked shrimp and pasteurisedcrabmeat business of the Amalgam Group of Companies.
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Ownership/Auditor/Registrar
OWNERSHIP : Unilever (F) Group
AUDITORS: Lovelock Lewes
REGISTRAR : Karvy computer share pvtLtd.
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Directors interest
Name of Director No of Shares Percentage holdingMr. Harish Manwani 22130 0.001
Mr. Douglas Baillie Nil NA
Mr. D. S. Parekh 38250 0.002
Prof. C. K. Prahalad Nil NA
Mr. Aditya Narayan Nil NA
Mr. S. Ramadorai Nil NA
Mr. D. Sundaram 22020 0.001
Mr. Nitin Paranjpe 12606 0.001
Mr. Sanjiv Kakkar 32680 0.002
Dr. R. A. Mashelkar Nil NA
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Key Indicators (16.07.08)
Closing price (Rs) : 215.4
EPS (Rs) : 8.2940
P/ E : 25.97 B/V per share (Rs) : 8.353
PB : 25.78
Market Capitalization (Rs crores) :46921.465
Beta : 0.66
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Analysis
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For the year ended
31st December.
2007 2006
Net sales 13717,75 12103,39
Other operational income 224,82 191,46
Total 13942,57 12294,85
Operating expenses (11832,05) (10455,33)
PBDIT 2110,52 1839,52
Depreciation (138,36) (130,16)
Interest income (net) 212,37 152,32
PBT 2184,53 1861,68
Taxation (415,47) (322,01)
PAT (before exceptional 1769,06 1539,67
Exceptional items (net of tax) 156,41 315,70
Net profit 1925,47 1855,37
Summarized Profit and Loss Statement
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3,842.363,563.162,361.902,795.421,527.10Total
100.6118.0632.4435.4763.01Unsecured loans
1,603.701,453.0624.537.1325.52Secured loans
Loan funds
1,917.941,871.922,084.842,502.141,220.82Reserves & surplus
-----Preference sharecapital
-----Share applicationmoney
220.12220.12220.12220.68217.75Equity share capital
Owner's fund
Sources of funds
Dec ' 03Dec ' 04Dec ' 05Dec ' 06Dec ' 07Year
Balance Sheet
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Uses of funds
Fixed assets
Gross block 2,669.08 2,462.69 2,375.11 2,314.22 2,141.72
Less:
0.67 0.67 0.67 0.67 0.67
Revaluation
reserve
Less :
1,146.57 1,061.94 989.61 891.08 846.09
Accumulated
depreciation
Net block 1,521.84 1,400.08 1,384.83 1,422.47 1,294.96
Capital work
185.64 110.26 98.03 94.42 73.84in-progress
Investments 1,440.81 2,522.22 2,148.72 2,229.56 2,574.93
Net current assets
Current
3,681.12 3,555.08 3,101.67 3,670.80 3,878.88
assets, loans
& advances
Contd.
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Net current assets
Current
3,681.12 3,555.08 3,101.67 3,670.80 3,878.88
assets, loans
& advances
Less :current
5,302.30 4,792.23 4,371.36 3,854.10 3,980.25
liabilities &
provisions
Total current
-1,621.18 -1,237.15 -1,269.69 -183.3 -101.37assets
Total 1,527.10 2,795.42 2,361.90 3,563.16 3,842.36
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Cash flow (Rs crore)
Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 Dec ' 03
Profit before tax 2,184.53 1,861.68 1,604.47 1,505.32 2,244.95
Net cash flow-operatingactivity 1,680.11 1,594.82 2,018.13 1,301.60 1,476.48
Net cash usedin investingactivity 1,023.76 -197.95 386.16 315.04 -52.7
Net cash usedin fin. activity -2,921.34 -1,344.73 -2,748.25 -1,725.06 -1,559.98
Net inc/dec incash and
equivalent -217.47 52.15 -343.96 -108.42 -136.19Cash andequivalentbegin of year 418.33 364.79 698.99 806.46 942.66
Cash andequivalent endof year 200.86 416.94 355.03 698.05 806.46
Comparison Of Cash flows
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TREND OF EPS(1998-2007)
3.674.86
5.957.46 8.04 8.05
5.446.4
8.41 8.73
0
2
4
6
8
10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEARS
EPSOFRE1@
EPS
Earning per share (EPS) of HUL has been a bit volatile as it dipped in 2004,but now It is in increasing trend and have reached 8.73rs per share(2007).There is 137.8% increase from 1998 to 2007. Earnings Per Share for the year2007 at Rs. 8.73, reflects the growth of Net Profit (after exceptional items)by 3.8%.
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TREND OF DPS(1998-2007)
2.22.9
3.5
5 5.165.5
5 5
89
0
5
10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEAR
DPSOFRe1@
DPS
Dividend per share (DPS) dipped to 5rs in 2004 but now is on increasing trendand current figure is 9rs.It has increased by 309.1% from 1998 to 2007. TheBoard of Directors have recommended a final dividend of Rs. 3/- per share.Total dividend to the Shareholders for 2007 stands at Rs. 9/- per share, andincludes the interim dividend of Rs. 3/- per share paid in August 2007 and Rs.3/- per share paid in November 2007 as Special Platinum Jubilee Dividend to
commemorate the Companys 75th year of operations in the Country.
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TREND OF PAT(%SALES)
8.29.8
15.8 16.3
11 11.3 11.8 1213.111.5
0
5
10
15
20
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
YEAR
PAT/SALES(%)
PAT
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HUL SHARE PRICE ON BSE
213.9
216.55
197.25
143.5
204.75
181.75
223.65
206.35
225
166.35
0
50
100
150
200
250
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEAR
SHARE
PRICE
SHARE PRICE
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TREND OF MARKET CAPITALIZATION
47788
4657543419
31587
45059
40008
49231
45409
49513
36,525
0
20,000
40,000
60,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEARS
VALUE
MARKET CAPITALIZATION
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companies HUL COLGATE DABUR GILLETE GODREJINDUSTRIESLTD
1. P/E ratio
2. EPS
3. SALES
4. FACE VALUE
5. NET PROFIT MARGIN
6. LAST DEVIDEND
7. RETURN ONAVERAGE EQUITY
24.87
8.83
3793.34
1
12.58
300
122.97
24.25
3.67
534.30
1
15.07
75
61.58
21.57
17.04
407.60
1
15
700
142.84
37.97
21.58
148.43
10
20.17
75
39.58
40.63
3.57
154.66
1
12.69
125
10.16
COMPARISON
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December
-07December
-06 December-05 December-04 December-03
Operatingmargin
(%) 14.95 14.74 14.14 15.32 20.58
Gross profitmargin(%) 13.96 13.68 13.03 14.12 19.36
Net profitmargin(%) 12.58 14.94 12.42 11.68 16.84
PROFITABILITYRATIOS
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December-
07December-
06December-
05December-
04December
-03
Long term debt /Equity - - - 0.63 0.62
Totaldebt/equity 0.06 0.02 0.02 0.70 0.79
Fixed assetsturnover
ratio 5.64 5.35 5.11 4.69 5.19
LEVERAGE RATIOS
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Dec-07 Dec-06 Dec-05 Dec-04 Dec-03
Current ratio 0.69 0.74 0.70 0.95 0.97
Quick ratio 0.24 0.33 0.32 0.47 0.52
LIQUIDITY RATIOS
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Conclusion
After analysing the annual report,
the company shows great potential for the
future.Inspite of fall in EPS & DPS in
2004,now it has come to an increasing trend
which is a safe sign for investors.
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THANK YOU