Hindustan Unilever Ltd (NBB: HINL F)

Exchange rate used is that of the Year End reported date

As Reported Annual Income Statement

Report Date 03/31/2010 03/31/2009
Currency INR INR
Audit Status Not Qualified Not Qualified
Consolidated Yes Yes
Scale Thousands Thousands
Sales 177,642,700 205,011,025
Other income 3,439,700 5,581,247
Total income 181,082,400 210,592,272
Operating expenses 151,883,600 177,981,966
Depreciation 1,919,400 1,999,750
Interest expense 74,700 264,479
Total expenditure 153,877,700 180,246,195
Profit before taxation 27,204,700 30,346,077
Current tax 6,370,500 5,446,351
Deferred tax 201,500 47,388
Fringe benefit tax - 381,837
Adjustments of previous years, net 419,300 483,525
Taxation for the year - -
Profit after taxation before exceptional / extraordinary items 21,052,000 24,954,026
Exceptional/extraordinary items (net of tax) 594,100 145,299
Profit before minority interests 21,646,100 25,099,325
Minority interests (79,800) (54,274)
Net profit 21,566,300 25,045,051
Weighted average shares outstanding - basic 2,180,819.678 2,178,639.191
Weighted average shares outstanding - diluted 2,183,954.984 2,183,140.719
Year end shares outstanding 2,181,686.781 2,179,876.077
Earnings (loss) per share -basic 9.89 11.5
Earnings (loss) per share - diluted 9.87 11.47
12/31/2007 12/31/2006 12/31/2005
INR INR INR
Not Qualified Not Qualified Not Qualified
Yes Yes Yes
Thousands Thousands Thousands
139,134,028 124,109,761 115,658,260
4,531,403 3,929,188 3,133,787
143,665,431 128,038,949 118,792,047
120,091,707 107,989,083 101,294,614
1,419,060 1,356,661 1,383,752
264,858 139,666 242,056
121,775,625 109,485,410 102,920,422
21,889,806 18,553,539 15,871,625
3,464,761 2,729,538 2,376,144
396,518 228,179 413,952
402,293 359,731 313,429
50,494 (4,602) 460,160
- - -
- - -
- - -
- - -
- - -
17,676,728 15,231,489 13,228,260
2,204,577.163 2,205,519.601 2,201,243.793
2,204,577.163 2,205,519.601 2,201,243.793
2,177,463.355 2,206,776.097 2,201,243.793
8.69 8.57 6.16
8.69 8.57 6.16
12/31/2004 12/31/2003 12/31/2002 12/31/2001
INR INR INR INR
Not Qualified Not Qualified Not Qualified Not Qualified
Yes Yes No Yes
Thousands Thousands Thousands Thousands
105,982,001 108,369,478 99,548,530 109,718,969
3,036,107 4,318,247 3,845,422 3,817,905
109,018,108 112,687,725 103,393,952 113,536,874
91,080,671 88,408,332 79,989,950 92,579,113
1,956,795 1,999,869 1,341,006 1,446,597
1,362,494 691,176 91,840 77,442
94,399,960 91,099,377 81,422,796 94,103,152
14,618,148 21,588,348 21,971,156 19,433,722
2,842,366 4,439,612 4,589,400 3,976,900
510,650 625,193 209,100 47,300
- - - -
139,933 479,950 - -
- - - -
- - - -
- - - -
- - - -
- - - -
11,405,065 17,003,493 17,172,656 15,409,522
2,201,243.793 2,201,243.793 - -
2,201,243.793 2,201,243.793 - -
2,201,243.793 2,201,243.793 2,201,243.793 2,201,243.793
5.49 7.67 7.98 7.46
5.49 7.67 7.98 7.46
12/31/2000 12/31/1999 12/31/1998
INR INR INR
Not Qualified Not Qualified Not Qualified
No No No
Thousands Thousands Thousands
106,037,896 101,424,884 94,818,486
3,450,730 3,189,800 2,447,361
109,488,626 104,614,684 97,265,847
91,396,837 89,223,825 84,658,230
1,309,385 1,287,586 1,010,453
131,473 223,877 292,810
92,837,695 90,735,288 85,961,493
16,650,931 13,879,396 11,304,354
3,550,000 - -
- - -
- - -
- - -
- 3,180,000 2,930,000
- - -
- - -
- - -
- - -
13,100,931 10,699,396 8,374,354
- - -
- - -
2,200,595.07 219,569.495 199,167.286
5.95 4.86 36.7
- - -
12/31/1997 12/31/1996 12/31/1995 12/31/1994
INR INR INR INR
Not Qualified Not Qualified Not Qualified Not Qualified
No No Yes Yes
Thousands Thousands Thousands Thousands
78,197,084 66,001,079 33,669,474 28,264,825
1,838,731 1,180,791 666,987 562,142
80,035,815 67,181,870 34,336,461 28,826,967
70,614,787 60,006,782 30,176,634 25,268,826
579,537 552,586 236,131 235,617
338,947 570,030 201,484 295,398
71,533,271 61,129,398 30,614,249 25,799,841
8,502,544 6,052,472 3,722,212 3,027,126
- - - -
- - - -
- - - -
- - - -
2,700,000 1,925,500 1,330,000 1,127,500
- - - -
- - - -
- - - -
- - - -
5,802,544 4,126,972 2,392,212 1,899,626
- - - -
- - - -
199,167.286 145,839 145,839 145,839
28.14 20.8 16.4 13.02
- - - -
12/31/1993 12/31/1992
INR INR
Not Qualified Not Qualified
Yes Yes
Thousands Thousands
20,631,674 17,570,280
297,566 119,970
20,929,240 17,690,250
18,207,095 15,512,568
222,166 196,005
272,273 321,916
18,701,534 16,030,489
2,227,706 1,659,761
- -
- -
- -
- -
955,000 675,000
- -
- -
- -
- -
1,272,706 984,761
- -
- -
139,987 -
9.09 7.03
- -
Net Sales in Thousands starting from 2010 till 1992

Year +1 Year
177,642,700 205,011,025
205,011,025 139,134,028
139,134,028 124,109,761
124,109,761 115,658,260
115,658,260 105,982,001
105,982,001 108,369,478
108,369,478 99,548,530
99,548,530 109,718,969
109,718,969 106,037,896
106,037,896 101,424,884
101,424,884 94,818,486
94,818,486 78,197,084
78,197,084 66,001,079
66,001,079 33,669,474
33,669,474 28,264,825
28,264,825 20,631,674
20,631,674 17,570,280
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9289727859
R Square 0.8629904369
Adjusted R Square 0.8532040395
Standard Error 17382881.585
Observations 16

ANOVA
df SS MS F Significance F
Regression 1 2.6645672E+16 2.664567E+16 88.18264828 2.0237668E-07
Residual 14 4.230304E+15 3.021646E+14
Total 15 3.0875976E+16

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 5201827.9555 10604286.6918 0.4905401095 0.6313507213 -17542104.906 27945761
205011025 1.077243097 0.11471551288 9.3905616595 2.023767E-07 0.83120279286 1.323283

From B18, growth rate in net sales calculated from regression = 7.72%
Lower 95.0%
Upper 95.0%
-1.8E+07 27945761
0.831203 1.323283
 Last Price Market Sales Net Profit Total Debt Equity
Cap. Assets
(Rs. cr.) Turnover
Dabur
India 96.35 16,771.87 2,874.60 433.15 855.45 106.07 749.38

Godrej
Consumer 403.6 13,060.10 1,267.88 248.12 839.87 12.4 827.47
Colgate 863.9 11,748.42 1,770.82 290.22 330.7 4.59 326.11
Marico 125.25 7,693.56 2,030.85 235.02 948.58 376.92 571.66
Emami 403.45 6,104.67 1,006.86 165.4 874.02 253.25 620.78
P and G 1,792.00 5,816.96 904.46 179.76 534.65 0.00 534.64
Jyothy
Labs 275.9 2,224.64 579.87 80.05 399.1 0.17 398.92
63,420.22

Industry B 0.450365
D/E for H 0
HUL Beta 0.450365 HUL Beta is same as Industry beta since its D/E=0
Market Ret 14.03%
Bond Rate 7.84%
Cost of Eq 10.63%
Cost of De 0.00%
Cost of Cap 10.63%
 D/E Beta Unlevered Weight
Beta

0.141544 0.465 0.407343 0.2645

0.014985 0.541 0.533013 0.2059

0.014075 0.359 0.354017 0.1852
0.659343 0.461 0.277821 0.1213
0.407955 0.758 0.53837 0.0963
0 0.601 0.601 0.0917

0.000426 0.76 0.759676 0.0351

beta since its D/E=0

 Long Term
Growth Rate 5%
Long Term
rate of return 11%

2009 2010 2011

SALES (Rs. Crores) 17,523.80 18,877.39
Fixed asset turnover ratio 7.19 7.19
Net Fixed Assets (Rs. Crores) 2436.06 2624.23
Gross Fixed Assets (Rs. Crores) 3581.96 3463.74
Depreciation % 31.99% 31.99%
Total asset turnover ratio 6.78 6.78
Total assets (Rs. Crores) 2583.53 2783.09
Investment (Rs. Crores) 1264.08
Deferred tax assets (Rs. Crores) 451.13
Deferred tax liabilities 202.31
Net current assets (Rs. Crores) -1365.43 158.86
D/E 0 0
EBIT (Rs. Crores) 2813.40 3265.08
Return 0.16 0.16
EBT (Rs. Crores) 2813.40 3265.08
Tax Rate 35% 35%
Taxes (Rs. Crores) 984.69 1142.78
EAT (Rs. Crores) 1828.71 2122.30
Capex (Rs. Crores) 357.23 384.82
Sales to Capex Ratio 49.05 49.06
Current Assets (Rs. Crores) 5601 5367.76
Current Liabilities (Rs. Crores) 5783.8 6733.21
Working Capital (Rs. Crores) -182.8 -1365.45
Change in WC (Rs. Crores) -1182.65 -1274.00
Sales to change in WC -14.82 -14.82

Free cash flow to firm (Rs. Crores) 2654.13 3011.49

Continuing Value (Rs. Crores)
Cost of Capital 10.63%
PV (Rs. Crores) 2722.18
Total PV upto 2015 14352.39
PV of CV (Rs. Crores) 53003.44
Enterprise Value (Rs. Crores) 67355.83
 2012 2013 2014 2015
20,335.54 21,906.32 23,598.43 25,421.25
7.19 7.19 7.19 7.19
2826.93 3045.29 3280.52 3533.92
3731.29 4019.51 4329.99 4664.45
31.99% 31.99% 31.99% 31.99%
6.78 6.78 6.78 6.78
2998.06 3229.64 3479.11 3747.84

171.13 184.35 198.59 213.92

0 0 0 0 Remark: The Debt to Equity
3782.19 4381.19 5075.06 5878.81
0.16 0.16 0.16 0.16
3782.19 4381.19 5075.06 5878.81
35% 35% 35% 35%
1323.77 1533.42 1776.27 2057.58
2458.42 2847.77 3298.79 3821.23
414.54 446.56 481.06 518.22 Refer Page 65 in annual re
49.06 49.06 49.06 49.06

-1372.41 -1478.42 -1592.62 -1715.63

-14.82 -14.82 -14.82 -14.82

3416.29 3879.63 4410.34 5018.65

87826.32
10.63% 10.63% 10.63% 10.63%
2791.43 2865.48 2944.53 3028.77
Remark: The Debt to Equity ratio has been very low, near to zero for the past many years.

Refer Page 65 in annual report HUL