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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 1.94 % in the past year, substantial increase in net sales/revenue by 1.39 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 14.04 %. Marginal decrease of -21.01% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Hindustan Unilever Limited. Profit dropped by -2.33 % Year to Year, Hindustan Unilever Limited’s profitability dropped by -0.65 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -2.39 % Year to Year. EPS decreased by -0.72 % in previous quarter. Analysis needed for shareholder value.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 15623 Cr | Rs. 15707 Cr | Rs. 15926 Cr | + 1.39 % | + 1.94 % |
Expenses | Rs. 11828 Cr | Rs. 11963 Cr | Rs. 12139 Cr | + 1.47 % | + 2.63 % |
Operating Profit | Rs. 3795 Cr | Rs. 3744 Cr | Rs. 3787 Cr | + 1.15 % | -0.21 % |
OPM % | 24.29 % | 23.84 % | 23.78 % | -0.06 % | -0.51 % |
Other Income | Rs. 178 Cr | Rs. 257 Cr | Rs. 203 Cr | -21.01 % | + 14.04 % |
Interest | Rs. 88 Cr | Rs. 93 Cr | Rs. 110 Cr | + 18.28 % | + 25 % |
Depreciation | Rs. 297 Cr | Rs. 329 Cr | Rs. 338 Cr | + 2.74 % | + 13.8 % |
Profit before tax | Rs. 3588 Cr | Rs. 3579 Cr | Rs. 3542 Cr | -1.03 % | -1.28 % |
Tax % | 25.93 % | 25.97 % | 26.69 % | + 0.72 % | + 0.76 % |
Net Profit | Rs. 2657 Cr | Rs. 2612 Cr | Rs. 2595 Cr | -0.65 % | -2.33 % |
EPS in Rs | Rs. 11.3 | Rs. 11.11 | Rs. 11.03 | -0.72 % | -2.39 % |
Today, we’re looking at Hindustan Unilever Limited’s financial performance for the Q2(Sep 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 1.94 %. However, it did see a marginal increase of 1.39 % from the previous quarter. Expenses ticked up slightly by 1.47 % quarter-on-quarter, aligning with the annual rise of 2.63 %. Operating profit, while down -0.21 % compared to last year, faced a quarter-on-quarter increase of 1.15 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.51 %, but a shrinkage of -0.06 % sequentially. Other income fell by -21.01 % compared to the last quarter, despite an annual growth of 14.04 %. Interest expenses surged remarkably by 18.28 % from the previous quarter, yet the year-over-year increase remains at a moderate 25 %. Depreciation costs climbed by 2.74 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 13.8 %. Profit before tax declined annually by -1.28 % but saw a reduction from the preceding quarter by -1.03 %.
Tax expenses as a percentage of profits increased slightly by 0.76 % compared to last year, with a more notable quarter-on-quarter increase of 0.72 %. Net profit fell by -2.33 % year-on-year but witnessed a -0.65 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -2.39 % but a quarterly fall of -0.72 %. In summary, Hindustan Unilever Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 15623 Cr | Rs. 15707 Cr | Rs. 15926 Cr | + 1.39 % | + 1.94 % |
Expenses | Rs. 11828 Cr | Rs. 11963 Cr | Rs. 12139 Cr | + 1.47 % | + 2.63 % |
Operating Profit | Rs. 3795 Cr | Rs. 3744 Cr | Rs. 3787 Cr | + 1.15 % | -0.21 % |
Net Profit | Rs. 2657 Cr | Rs. 2612 Cr | Rs. 2595 Cr | -0.65 % | -2.33 % |
EPS in Rs | Rs. 11.3 | Rs. 11.11 | Rs. 11.03 | -0.72 % | -2.39 % |
In reviewing Hindustan Unilever Limited’s 2024(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 1.94 % year-on-year growth, however, there was a minor increase of 1.39 % from the previous quarter. Expenses rose by 2.63 % compared to the previous year, with a 1.47 % increase quarter-on-quarter. Operating Profit dropped by -0.21 % annually, and saw a 1.15 % increase from the last quarter.
Net Profit showed yearly decrease of -2.33 %, and experienced a -0.65 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -2.39 % annually, however dipped by -0.72 % compared to the last quarter. In essence, while Hindustan Unilever Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
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