Quarterly Result Update

HINDUSTAN UNILIVER LIMITED

May 7, 2019

Consolidated Financial Results

In Cr.
Qtr Ending Qtr Ending Var.
Mar.2019 Mar. 2018 (%)
Current Price: ` 1672.35 Sales 9945.00 9097.00 9
OPM (%) 23.30% 22.50%
OP 2321.00 2048.00 13
Other Income 118.00 100.00 18
STOCK DATA PBIDT 2439.00 2148.00 14

BSE Code 500696 Interest (Income)/expenses 7.00 4.00 75

NSE Symbol HINDUNILVR PBDT 2432.00 2144.00 13

Reuters HLL.BO Depreciation 134.00 128.00 5

Bloomberg HUVR IN PBT before EO 2298.00 2016.00 14

Exceptional Items -71.00 -64.00 11
PBT after EO 2227.00 1952.00 14
Total Tax 689.00 601.00 15
Net profit 1538.00 1351.00 14
VALUE PARAMETERS
EPS 7.12 6.25
52 W H/L(Rs) 1870.50/1443.35
Mkt. Cap.(Rs Cr) 362014.34 Hindustan Uniliver Limited (HUL) Q4 profit rises 14% YoY to Rs 1,538
Latest Equity(Subscribed) 216.47 crore; misses Street estimates.
Latest Reserve (cons.) 7443.00
Revenue of Hindustan Unilever Limited (HUL) grew by 9% y-o-y at Rs. 9945 crore. Volume
Latest EPS (cons.) -Unit Curr. 28.62
growth of 7% can be attributed to strong traction to new launches. OPM improved by 80 BPS
Latest P/E Ratio -cons 58.43 to 23.3% due to better leverage and other cost initiatives. Operating profit grew by 13% y-o-y
Latest Bookvalue (cons.) -Unit Curr. 35.38 to Rs. 2321 crore. Interest cost was up by 75% to Rs 7 crore and depreciation was up by 5% to
Latest P/BV - cons 47.27 Rs 134 crore. Thus PBT was up by 14% to Rs 2298 crore. There was an EO expense of Rs 71
crore pertaining to restructuring expense, provision towards purifier devices as compared EO
Dividend Yield -% 1.31
expense of Rs 64 crore towards restructuring expense. PBT after EO thus stood at Rs 2227
Face Value 1
crore up by 14%. After providing total tax of Rs 689 crore, PAT for Mar 19 quarter stood at Rs
1538 crore up by 14% YoY.

During the quarter, revenue of the home care category grew by 15%, with sustained double-
digit volume-led growth across key categories. PBIT margin of the home care category stood
SHARE HOLDING PATTERN (%)
at 12.8% with PBIT growth at 14% to Rs 404 crore. The personal care category registered
Description as on % of Holding revenue growth of 11%, with skin care, hair care and personal wash segments registering
(AS ON 31 Mar 2019) double-digit growth. PBIT margin of the personal care category improved by 100 bps YoY to
Foreign 12.30 25.6%. The foods & refreshment category registered strong double-digit growth of 10%
Institutions 7.03 during the quarter. The acquisition of Adityaa Milk Ice Cream during the quarter is being
Govt Holding 0.00 integrated with the company. PBIT margin of the category improved by 320 bps at 14.1%
Non Promoter Corp. Hold. 1.75 during the quarter.
Promoters 67.19
Other updates
Public & Others 11.75
Domestic Consumer Growth was 9% with Underlying Volume Growth at 7%. EBITDA margin
was up 90 bps and Profit after tax grew by 13%.

1
Home Care

Home Care delivered another quarter of strong volume led growth with both Fabric Wash and
Household Care growing in double digits. The performance of Fabric Wash was driven by
premiumization and market development initiatives. Surf Excel Easy Wash Liquid was launched
nationally. Household Care sustained its double-digit growth delivery driven by liquids
upgradation and increased penetration of bars. In Water Purifiers, we are seeing steady
progress on our strategy of reshaping the portfolio and redesigning the ‘Go-to-Market' model.

Beauty & Personal Care

In Personal Wash, while premium brands continued their growth momentum, popular segment
delivered below expectations. Skin Care had double-digit growth on the back of steady
performance across the portfolio. Hair Care witnessed good growth across brands. We
enhanced our presence in naturals through the national launch of Dove Nourishing Secrets with
natural ingredients. In Colour Cosmetics, our focus on emerging trends has enabled us to
sustain a consistent performance. Oral Care performed well on the back of Close Up & Lever
Ayush.

Foods & Refreshment

In Beverages, ‘Winning in Many India's' (WiMI) initiatives and purpose led campaigns have
aided consistent strong performance. Ice Cream and Frozen Desserts registered strong growth
with an exciting range of innovations launched for the summer season. Foods maintained its
steady growth trajectory.

Margin improvement sustained: EBITDA margin up by 90 bps

Prudent management of volatility in costs (crude and currency led) along with improved mix
and operating leverage has driven margin improvement.

For FY 19, comparable Domestic Consumer Growth was 12% with 10% Underlying Volume.
Strong record of cash generation was sustained.

Dividend

The Board of Directors have proposed a final dividend of Rs. 13 per share, subject to the
approval of the shareholders at the AGM. Together with the interim dividend of Rs. 9 per share,
the total dividend for the financial year ending 31st March 2019 amounts to Rs. 22 per share.

Management Comments

Sanjiv Mehta, Chairman and Managing Director commented: "We have delivered a
strong performance for the quarter despite some moderation in rural market growth. Our focus
on strengthening the core and leading market development has been consistently delivering
good results. We have now grown top line and bottom line for the eighth consecutive year and
our 2019 results are a testament to both our strategy and execution. With our ‘Re-imagining
HUL' agenda, we are well poised to build an organization which is purpose led and future fit.

Given the macro-economic indicators, near-term market growth has moderated. However,
medium-term outlook stays positive. As an organization we are well positioned to respond with
speed and agility to meet the needs of our consumers. We remain focused on our strategic
agenda of delivering Consistent, Competitive, Profitable and Responsible growth."

2
E-mail: smc.care@smcindiaonline.com

Corporate Office: Mumbai Office: Kolkata Office:

11/6B, Shanti Chamber, Lotus Corporate Park, A Wing 401 / 402 , 4th Floor , 18, Rabindra Sarani, Poddar Court, Gate No-4,
Pusa Road, New Delhi - 110005 Graham Firth Steel Compound, Off Western 5th Floor, Kolkata - 700001
Tel: +91-11-30111000 Express Highway, Jay Coach Signal, Goreagon Tel.: 033 6612 7000/033 4058 7000
www.smcindiaonline.com (East) Mumbai - 400063 Fax: 033 6612 7004/033 4058 7004
Tel: 91-22-67341600, Fax: 91-22-67341697

SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is regulated by the Securities and Exchange Board of India (“SEBI”) and is licensed to carry on the business of broking, depository services and related
activities. SMC is a registered member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited, MSEI (Metropolitan Stock Exchange of India Ltd) and M/s SMC Comtrade Ltd is a registered
member of National Commodity and Derivative Exchange Limited and Multi Commodity Exchanges of India and other commodity exchanges in India. SMC is also registered as a Depository Participant with CDSL
and NSDL. SMC’s other associates are registered as Merchant Bankers, Portfolio Managers, NBFC with SEBI and Reserve Bank of India. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBI registered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in
securities market. SMC or its associates or its Research Analyst or his relatives do not hold any financial interest in the subject company interest at the time of publication of this Report. SMC or its associates or its
Research Analyst or his relatives do not hold any actual/beneficial ownership of more than 1% (one percent) in the subject company, at the end of the month immediately preceding the date of publication of this
Report. SMC or its associates its Research Analyst or his relatives does not have any material conflict of interest at the time of publication of this Report.
SMC or its associates/analyst has not received any compensation from the subject company covered by the Research Analyst during the past twelve months. The subject company has not been a client of SMC
during the past twelve months. SMC or its associates has not received any compensation or other benefits from the subject company covered by analyst or third party in connection with the present Research Report.
The Research Analyst has not served as an officer, director or employee of the subject company covered by him/her and SMC has not been engaged in the market making activity for the subject company covered by
the Research Analyst in this report.
The views expressed by the Research Analyst in this Report are based solely on information available publicly available/internal data/ other reliable sources believed to be true. SMC does not represent/ provide any
warranty expressly or impliedly to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
The research analysts who have prepared this Report hereby certify that the views /opinions expressed in this Report are their personal independent views/opinions in respect of the subject company.

Disclaimer: This Research Report is for the personal information of the authorized recipient and doesn't construe to be any investment, legal or taxation advice to the investor. It is only for private circulation and use.
The Research Report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. No action is solicited on the basis of the
contents of this Research Report. The Research Report should not be reproduced or redistributed to any other person(s)in any form without prior written permission of the SMC. The contents of this material are
general and are neither comprehensive nor inclusive. Neither SMC nor any of its affiliates, associates, representatives, directors or employees shall be responsible for any loss or damage that may arise to any person
due to any action taken on the basis of this Research Report. It does not constitute personal recommendations or take into account the particular investment objectives, financial situations or needs of an individual
client or a corporate/s or any entity/s. All investments involve risk and past performance doesn't guarantee future results. The value of, and income from investments may vary because of the changes in the macro and
micro factors given at a certain period of time. The person should use his/her own judgment while taking investment decisions. Please note that SMC its affiliates, Research Analyst, officers, directors, and employees,
including persons involved in the preparation or issuance if this Research Report: (a) from time to time, may have long or short positions in, and buy or sell the securities thereof, of the subject company(ies) mentioned
here in; or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company(ies) discussed
herein or may perform or seek to perform investment banking services for such company(ies) or act as advisor or lender/borrower to such subject company(ies); or (c) may have any other potential conflict of interest
with respect to any recommendation and related information and opinions.
All disputes shall be subject to the exclusive jurisdiction of Delhi High court.