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4QFY2013 Result Update | FMCG

May 2, 2013

HUL
Performance Highlights
Quarterly results (standalone)
(` cr) Revenue EBITDA OPM (%) Recurring PAT 4QFY2013 6,367 873 13.7 778 4QFY2012 5,660 728 12.9 659 % yoy 12.5 20 85 18.1 Angel Est. 6,354 852 13.4 854 % Diff 0.2 2.5 31 (8.9)

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code FMCG 123,769 (3,563) 0.3 597/401 216,380 1 19,736 5,999 HLL.BO HUVR@IN

`572 -

Source: Company, Angel Research

HUL has delivered an encouraging set of numbers for 4QFY2013, with the 6% volume growth in the domestic consumer marking a reversal in the trend of decline in volume growth over the past few quarters. We remain Neutral on the stock. Key highlights during the quarter: The companys top-line and bottom-line rose by 12.5% and 18.1% respectively. The OPM stood at 13.7%, ahead of our estimates of 13.4%. HUL managed to revive volume growth (6% yoy in 4QFY2013 vs 5% yoy in 3QFY2013) by passing on some benefits of reduction in raw material costs to customers by way of price cuts, and with increased advertising and promotion (A&P) expenditure bearing results. The Soaps and Detergents segment grew by 12.6% yoy. The high margin Personal Products segment rose by 12.1% yoy, while the Beverages segment grew 18.3% yoy. HULs promoter Unilever PLC has decided to make a voluntary open offer to buy a 22.52% stake, which would take its stake in HUL to 75%. The open offer has been priced at `600/share. As per Unilevers CEO Paul Polman, the US$5.4bn deal represents a further step in Unilevers strategy to invest in emerging markets and offers a liquidity opportunity at an attractive premium for existing shareholders. In our view, this move by Unilever indicates the huge confidence it has on the potential of Indias consumer sector. Outlook and valuation: We expect HUL to post an ~14.7% and 11.7% CAGR in its top-line and bottom-line respectively, over FY2013-15E. At the current market price, the stock is trading at 31.1x FY2015E earnings. We maintain our Neutral view on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 52.5 8.5 22.0 17.0

Abs. (%) Sensex HUVR

3m 19.8

1yr 37.5

3yr 12.4 139.5

(1.3) 14.0

Key financials (Standalone)


Y/E March (` cr) Net sales % chg Net profit (Adj.) % chg OPM (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2012 21,736 12.0 2,573 22.6 13.4 11.9 46.0 35.2 83.4 74.2 5.5 41.3

FY2013E 25,206 16.0 3,188 23.9 13.5 14.7 38.8 46.3 103.1 107.4 4.8 35.4

FY2014E 29,167 15.7 3,695 15.9 13.6 17.1 33.5 32.2 113.4 91.1 4.1 30.2

FY2015E 33,164 13.7 3,978 7.7 13.7 18.4 31.1 23.3 87.0 77.0 3.6 26.1

V Srinivasan
022-39357800 Ext: 6831 v.srinivasan@angelbroking.com

Please refer to important disclosures at the end of this report

HUL | 4QFY2013 Result Update

Exhibit 1: Quarterly performance (Standalone)


Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Advertising Expenses (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation Other Income PBT (excl. Extr Items) Extr Income/(Expense) PBT (incl. Extr Items) (% of Sales) Provision for Taxation (% of PBT) Recurring PAT
Source: Company, Angel Research

4QFY2013 6,367 3,433 53.9 312 4.9 821 12.9 928 14.6 5,494 873 13.7 6.0 61 205 1,010 9 1,020 16.0 232 23.0 778

4QFY2012 5,660 3,122 55.2 275 4.9 677 12.0 858 15.2 4,933 728 12.9 0.2 57 175 846 28 874 15.4 188 22.2 659

% chg yoy 12.5 9.9 13.5 21.2 8.2 11.4 19.9 85 2,905.0 7.6 16.6 19.4 16.6 23.9 18.1

3QFY2013 6,434 3,419 53.1 343 5.3 822 12.8 982 15.3 5,566 868 13.5 7.5 59 355 1,156 (7) 1,148 17.8 277 24.0 879

% chg qoq (1.0) 0.4 (8.9) (0.1) (5.5) (1.3) 0.6 23 (20.2) 3.6 (42.4) (12.6) (11.2) (16.1) (11.5)

FY2013 25,206 13,489 53.5 1,318 5.2 3,232 12.8 3,767 14.9 21,806 3,400 13.5 25 236 1,210 4,349 608 4,958 19.7 1,161 26.7 3,188

FY2012 21,736 11,738 54.0 1,107 5.1 2,635 12.1 3,345 15.4 18,825 2,911 13.4 1 218 659 3,350 119 3,469 16.0 778 23.2 2,573

% chg 16.0 14.9 19.1 22.7 12.6 15.8 16.8 10 1,928.2 8.1 83.7 29.8 42.9 49.3 23.9

Revenue growth at 12.5% yoy


HULs Home & Personal Care (HPC) and Foods businesses registered a double digit growth, resulting in an overall top-line growth of 12.5% yoy. Volume growth stood at 6%. The Soaps And Detergents segment posted a 13.0% yoy growth, with both laundry and skin cleansing segments reporting healthy growth rates. However, the growth of Personal Products segment continued to remain relatively weak at 12% yoy due to the slowdown in discretionary spending. Beverages grew by 18% yoy, with tea delivering one of its strongest quarters. The Packaged Foods segment grew by 7% yoy.

May 2, 2013

HUL | 4QFY2013 Result Update

Exhibit 2: Top-line grows by 12.5% yoy


7,000 6,000 5,000 (` cr) 4,000 3,000 4,894 5,496 5,522 5,844 5,660 6,250 6,155 6,434 6,367 2,000 1,000 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 13.4 14.6 18.0 16.3 15.7 13.7 11.5 10.1 (%) 10.0 5.0 20.0 15.0

Exhibit 3: Volume growth revives marginally


16 14 12.5 12 10 (%) 8 6 4 2 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 46.1 13.7 4Q13 8 14

10

10

9 7 5 6

Top-line (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

OPM up by 85bp yoy to 13.7%; Net profit up by 18.1% yoy


During the quarter, HUL reported a 125bp yoy improvement in gross margin aided by fall in prices of PFAD (a key raw material). The company increased its A&P expenses during the quarter by `144cr yoy to `821cr. A&P expenses as a proportion of sales stood at 12.9%, up 90bp on a yoy basis. The companys OPM rose by 85bp on a yoy basis. During the quarter, HUL posted an 18.1% yoy increase in its recurring net profit to `778cr (`659cr in 4QFY2012).

Exhibit 4: Recurring PAT growth remains healthy


1,010 810 610 410 10.4 568 645 766 659 727 805 486 210 10 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 33.7 25.9 22.6 35.6 27.8 25.0 18.1 14.7 879 778 40.0 35.0 30.0 25.0 ( %) 20.0 15.0 10.0 5.0 -

Exhibit 5: Gross margin grows but OPM remains flat


60.0 50.0 40.0 (%) 30.0 20.0 10.0 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 12.4 11.6 12.0 13.4 14.7 12.9 13.4 13.3 13.5 48.9 45.6 44.0 45.7 47.3 44.8 46.1 46.9 46.9

(` cr)

PAT (LHS)

yoy growth (RHS)

OPM

Gross margin

Source: Company, Angel Research

Source: Company, Angel Research

May 2, 2013

HUL | 4QFY2013 Result Update

Exhibit 6: Segmental Performance


Y/E March (` cr) Income Soaps & Detergents Personal Products Beverages Packaged Foods Others Total Gross Income PBIT segment wise bifurcation Soaps & Detergents Personal Products Beverages Packaged Foods Others Total PBIT Less: Interest Exp Less: Other Unallocable Exp PBT PBIT Margin (%) Soaps & Detergents Personal Products Beverages Packaged Foods Others
Source: Company, Angel Research

4QFY2013 3,191 1,831 808 372 250 6,453 383 472 136 14 (16) 989 (6) 39 1,022 12.0 25.8 16.9 3.8 (6.4)

4QFY2012 2,834 1,633 683 348 260 5,759 320 449 98 (4) (5) 859 (0) 15 874 11.3 27.5 14.4 (1.1) (1.9)

% chg 12.6 12.1 18.3 7.0 (3.7) 12.1 19.7 5.0 38.4 (477) 228.8 15

3QFY2013 3,171 2,049 793 330 290 6,633 394 579 140 (3) (19) 1,092 (8) 64

%chg 0.6 (10.6) 1.9 12.8 (13.8) (2.7) (2.7) (18.5) (3.0) (631) (13.7) (9)

FY2013 12,702 7,472 2,875 1,506 1,093 25,647 1,616 1,949 475 37 (39) 4,037 (25) 946

FY2012 10,636 6,585 2,617 1,359 897 22,095 1,233 1,749 367 24 (30) 3,344 (1) 126 3,469 11.6 26.6 14.0 1.8 (3.3)

% chg 19.4 13.5 9.8 10.8 21.8 16.1 31.0 11.4 29.4 53.2 20.7

16.9

1,148 12.4 28.3 17.7 (0.8) (6.4)

(11.0)

4,958 12.7 26.1 16.5 2.5 (3.6)

42.9

S&D posts double-digit growth, all brands perform well


The Soaps & Detergents segment posted a healthy 12.6% and 19.7% yoy growth in sales and profit respectively with key brands in both the skin cleansing and laundry segments posting a double digit volume growth. Skin Cleansing sustained its broad based growth momentum led by brands such as Dove, Lux and Lifebuoy, which posted double digit volume growths. The company strengthened its body wash portfolio with the relaunch of Dove. The growth in the laundry segment was led by premium brands with Surf and Rin registering a double-digit volume growth.

May 2, 2013

HUL | 4QFY2013 Result Update

Exhibit 7: S&D continues to post impressive growth


3,500 3,000 2,500 (` cr) 2,000 1,500 1,000 500 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 11.4 12.9 21.9 20.8 28.6 23.7 22.3 19.8 12.6 30.0 25.0 20.0

Exhibit 8: EBIT margin up by 71bp yoy


500 400 9.2 (` cr) 300 200 166 236 321 356 320 385 454 394 383 100 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 7.5 12.4 13.4 11.3 14.3 12.2 12.4 12.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 (%) (%)

15.0 10.0

2,205

2,558

2,596

2,648

2,834

3,163

3,176

3,171

3,191

5.0 -

Top-line (LHS)

yoy growth (RHS)

(%)

EBIT (LHS)

EBIT % (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Personal products posts weak growth


The growth of Personal Products remained weak at 12% yoy due to significant slowdown in market growth. Despite the slowdown, Ponds age miracle sustained its strong momentum. There was broad based growth in the oral portfolio as well, with both Close Up and Pepsodent posting double digit volume growth.

Exhibit 9: Personal products growth subdued at 12%


2,500 19.6 2,000 1,500 1,000 1,459 1,633 1,556 1,813 1,633 1,847 1,745 2,049 500 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1,831 16.2 14.0 9.6 11.9 13.1 12.1 13.0 12.1 20.0 15.0 25.0

Exhibit 10: Segments EBIT margin expands


700 600 500 (` cr) (%) 400 300 200 365 413 394 488 456 579 472 4Q13 477 423 100 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 25.0 25.3 25.3 24.2 26.9 27.9 25.8 25.8 28.3 29.0 28.0 27.0 26.0 25.0 24.0 23.0 22.0

(` cr)

10.0 5.0 -

Top-line (LHS)

yoy growth (RHS)

EBIT (LHS)

EBIT % (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Foods division grows by 14.5% yoy


In the foods category, while growth in the Beverages segment was strong at 18.3% yoy, the Packaged Foods grew by a moderate 7% yoy. In the Beverages segment, growth was strong in both - tea and coffee. In the Packaged Foods segment growth was led by Kissan and Knorr while Kwality Walls registered a modest growth.

May 2, 2013

HUL | 4QFY2013 Result Update

Unilever makes a voluntary open offer to increase stake in HUL


HULs promoter Unilever PLC has decided to make a voluntary open offer to buy 22.52% stake in the company at an offer price of `600/share. Unilever currently holds 52.5% stake in HUL and proposes to take its total stake in the company to 75%, which is the maximum permissible promoter holding limit in a listed company. As per Unilevers CEO Paul Polman, the US$5.4bn deal represents a further step in Unilevers strategy to invest in emerging markets and offers a liquidity opportunity at an attractive premium for existing shareholders. Currently, more than 50% of Unilevers total turnover comes from emerging markets such as India, Brazil, Indonesia, Turkey, South Africa, China etc. India contributes ~7% of Unilevers total turnover. In our view, this move by Unilever indicates the huge confidence it has over the potential of Indias consumer sector

Investment arguments

Increasing innovation and brand repositioning to accelerate growth: HUL has been very actively re-launching products from its existing brands and has increased the pace of new launches, targeting the mid/premium market segment. This, in our view, is positive, considering that the company will have a better control on pricing. Moreover, constant innovations have helped HUL stabilize its market share losses.

Healthy domestic growth rates and strong balance sheet provide further impetus: HUL, with its iconic brands, has maintained its growth which is impressive given the recent price hikes across categories and a strong competitive scenario, indicating a revival in consumer demand and higher growth in the mid/premium market segment. Moreover, HUL is a cash-rich, zero-debt company enjoying a high RoE .

Outlook and valuation


We expect HUL to post an ~14.7% and 11.7% CAGR in its top-line and bottom-line respectively over FY2013-15E. At the current market price, the stock is trading at 31.1x FY2015E earnings. We maintain our Neutral view on the stock.

May 2, 2013

HUL | 4QFY2013 Result Update

Exhibit 11: Peer valuation


Company Asian Paints Britannia Colgate Dabur India Godrej Con GSK Con HUL* ITC Marico Nestle TGBL Reco Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Market Cap 45,337 6,874 20,466 26,210 28,580 17,557 123,771 260,705 14,222 47,465 9,202 CMP ` 4,727 576 1,505 151 840 4,175 572 333 221 4,923 149 TP ` Upside (%) P/E (x) FY14E 32.9 28.4 33.6 27.8 31.7 34.6 33.5 30.1 27.9 37.4 18.9 FY15E 27.8 22.9 29.0 23.8 26.3 28.5 31.1 25.7 22.5 30.8 17.1 EV/Sales (x) FY14E 3.3 1.0 5.5 3.6 3.8 4.5 4.1 7.4 2.6 4.7 1.1 FY15E 2.7 0.8 4.7 3.0 3.1 3.5 3.5 6.0 2.1 4.0 0.5 RoE (%) FY14E 35.0 37.4 98.3 43.9 26.5 33.7 113.4 35.5 22.8 58.8 9.5 FY15E 32.7 37.3 88.0 39.9 25.9 33.4 87.0 34.1 22.9 69.5 9.8 CAGR# Sales 18.8 15.5 15.1 16.0 18.8 17.6 14.7 15.3 14.8 16.7 10.0 PAT 18.0 22.0 17.4 19.7 22.2 18.7 11.7 16.6 23.3 18.4 13.0

Source: Angel Research; # CAGR over FY2013-15E

Exhibit 12: Angel vs Consensus estimates


Top-line (` cr) Angel estimates Consensus Diff (%)
Source: Bloomberg, Angel Research

FY2014E 29,167 29,158 0.0

FY2015E 33,164 32,959 0.6

EPS (`) Angel estimates Consensus Diff (%)

FY2014E

FY2015E

17.1 16.9 1.3

18.4 18.3 0.6

Exhibit 13: One-year forward P/E chart


800 700 Share Price (`) 600 500 400 300 200 100 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jul-12 Jan-13

Exhibit 14: One-year forward premium to Sensex


160% 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% May-11 May-12 May-10 May-09 May-07 May-08 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

20x

25x

30x

35x

Source: Company, Angel Research

Source: Company, Angel Research, Note: Blue line indicates 5-year average

Company Background
HUL, a 52% subsidiary of Unilever, is one of India's largest consumer goods companies. HUL is present across four main product categories 1) Soaps And Detergents (50% of revenue); 2) Personal Products (mainly shampoos, skin care and toothpaste; 30% of revenue); 3) Beverages (mainly tea and coffee; 12% of revenue); 4) Packaged Foods and ice cream (6% of revenue); and 5) Others, mainly consisting of water purifiers. The company, with its iconic brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan and Walls, has a vast presence in rural as well as urban Indian markets, with one of the largest distribution networks spanning over 6.3mn retail outlets.

May 2, 2013

HUL | 4QFY2013 Result Update

Profit & Loss Statement (Standalone)


Y/E March (` cr) Net Sales Total operating income % chg Total Expenditure Cost of Materials Advertising Exp Personnel Others EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Prior Period & Extr. Exp./(Inc.) PBT (reported) Tax (% of PBT) PAT (Adjusted) Add: Share of earnings of asso. Recurring PAT Reported PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2010 17,524 17,524 (13.4) 14,975 8,878 2,391 936 2,770 2,548 (4.1) 14.5 184 2,364 (3.9) 13.5 7 350 12.9 2,707 (10.5) (99) 2,806 604 22.3 2,103 2,103 2,202 (11.8) 12.6 9.6 9.6 (16.0) FY2011 19,401 19,401 10.7 17,036 10,057 2,764 961 3,254 2,365 (7.2) 12.2 221 2,144 (9.3) 11.1 0 586 21.5 2,730 0.9 (207) 2,937 631 23.1 2,099 2,099 2,306 4.7 11.9 9.7 9.7 0.9 FY2012 21,736 21,736 12.0 18,825 11,738 2,635 1,107 3,345 2,911 23.1 13.4 218 2,692 25.6 12.4 1 659 19.7 3,350 22.7 (119) 3,469 778 23.2 2,573 2,573 2,691 16.7 12.4 11.9 11.9 22.4 FY2013 25,206 25,206 16.0 21,806 13,489 3,232 1,318 3,767 3,400 16.8 13.5 236 3,164 17.5 12.6 25 1,211 27.8 4,349 29.8 (608) 4,957 1,161 26.7 3,188 3,188 3,796 41.0 15.1 14.7 14.7 23.9 FY2014E 29,167 29,167 15.7 25,195 15,517 3,733 1,473 4,471 3,973 16.8 13.6 228 3,745 18.4 12.8 33 1,255 25.3 4,967 14.2 4,967 1,272 25.6 3,695 3,695 3,695 (2.7) 12.7 17.1 17.1 15.9 FY2015E 33,164 33,164 13.7 28,613 17,643 4,212 1,675 5,084 4,550 14.5 13.7 259 4,291 14.6 12.9 33 1,238 22.5 5,496 10.6 5,496 1,517 27.6 3,978 3,978 3,978 7.7 12.0 18.4 18.4 7.7

May 2, 2013

HUL | 4QFY2013 Result Update

Balance Sheet (Standalone)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Long term provisions Other long term liabilities Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long term loans and adv. Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Total Assets 5,368 1,892 624 2,852 6,733 (1,365) 2,335 3,582 1,420 2,162 274 1,264 3,760 1,591 2,169 289 1,261 400 5,834 1,628 452 3,754 6,620 (786) 3,333 3,812 1,664 2,147 215 2,438 396 5,547 1,830 521 3,196 6,449 (902) 4,295 4,012 1,900 2,112 397 2,331 420 6,048 1,708 980 3,360 7,662 (1,614) 3,645 4,137 2,128 2,009 414 3,031 450 6,703 1,507 717 4,479 7,797 (1,095) 4,809 4,704 2,386 2,318 470 4,031 450 7,515 1,545 877 5,093 8,508 (994) 6,275 2,335 218 2,365 2,584 (249) 216 2,444 2,660 (210) 664 219 3,333 216 3,297 3,513 (214) 667 330 4,295 216 2,458 2,674 (205) 700 476 3,645 216 3,626 3,843 (210) 700 476 4,809 216 5,092 5,308 (210) 700 476 6,275 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

May 2, 2013

HUL | 4QFY2013 Result Update

Cash Flow Statement (Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Interest / Dividend (Net) Direct taxes paid Others Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net) Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2010 2,707 184 1,375 (117) 604 (67) 3,477 (502) (931) (1,434) 32 (422) 1,656 (117) (1,929) 115 1,777 1,892 FY2011 2,730 221 (538) (190) 631 (142) 1,450 (192) 3 (189) (73) 1,642 (190) (1,525) (264) 1,892 1,628 FY2012 3,350 218 205 (161) 778 208 3,043 21 (1,178) (1,156) 38.1 1,884 (161) (1,685) 201 1,628 1,830 FY2013E 4,349 236 361 (154) 1,161 1,016 4,647 (382) 108 (274) 0.1 4,649 (154) (4,494) (122) 1,830 1,708 FY2014E 4,967 228 (718) (198) 1,272 (50) 2,956 (142) (700) (842) 2,513 (198) (2,315) (201) 1,708 1,507 FY2015E 5,496 259 (124) (47) 1,517 61 4,127 (624) (1,000) (1,624) 2,513 (47) (2,466) 38 1,507 1,545

May 2, 2013

10

HUL | 4QFY2013 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) 4.9 45 14 110 (68) 5.2 53 18 105 (50) 5.7 42 11 87 (50) 6.3 46 9 84 (52) 7.1 46 10 78 (36) 7.1 46 10 76 (31) 103.6 90.5 85.7 80.1 85.5 83.4 96.3 103.1 106.2 113.4 88.6 87.0 9.6 9.7 10.6 6.5 12.0 9.7 9.7 10.7 6.5 12.3 11.9 11.9 12.9 7.5 16.3 14.7 14.7 15.8 18.5 12.4 17.1 17.1 18.1 10.0 17.8 18.4 18.4 19.6 10.0 24.6 56.7 54.1 47.9 1.1 6.9 47.8 52.1 53.6 53.3 46.5 1.1 6.3 51.4 45.6 46.0 44.3 35.2 1.3 5.5 41.3 33.1 38.8 36.1 46.3 3.2 4.8 35.4 40.9 33.5 31.5 32.2 1.7 4.1 30.2 29.2 31.1 29.2 23.3 1.7 3.6 26.1 21.3 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

May 2, 2013

11

HUL | 4QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com
Source: Company, Angel Research

Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

HUL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

May 2, 2013

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