Particulars (In Rs. Cr.) Q2FY21 Q1FY21 Q2FY20 QoQ % YoY%
Revenue from Sales of Products 11510 10570 9931 8.89 15.90
Revenue from Sale of Services 10 2 26 400.00 -61.54
Other Operating Income 163 159 148 2.52 10.14
Revenue from Operations 11683 10731 10105 8.87 15.62
Other Income 93 154 118 -39.61 -21.19
Total Income 11776 10885 10223 8.19 15.19
Raw Material Expenses 4279 3685 3331 16.12 28.46
Raw Material Expenses as % of Sales of Products 37.18% 34.86% 33.54%
EBITDA 2925 2695 2508 8.53 16.63
EBITDA Margin 25.04% 25.11% 24.82% (7) bps 22 bps
Profit After Tax 1974 1897 1818 4.06 8.58
PATM (%) 16.76% 17.43% 17.78% (67) bps (102) bps
Segment Revenue ( HUL+ GSK Consumer) Q2FY21 Q1FY21 Q2FY20 QoQ % YoY%
Home Care 3318 3392 3370 -2.18 -1.54
Beauty & Personal Care 4550 4043 4580 12.54 -0.66
Foods & Refreshment 3379 2958 1847 14.23 82.95
Others 436 338 308 28.99 41.56

Result Highlight:

  • HUL Consolidated revenue rose 15.6% over a year earlier to Rs 11,683 crore compared with the estimated Rs 11,154 crore.

  • Net profit of the company rose 8% year-on-year to Rs 1,974 crore in the three months ended September compared with the estimated Rs 2039.9 crore.

  • Revenue from sales of products came in at Rs 11,510 crore, up 15.19 per cent from Rs 10,223 crore a year ago.

  • Volumes rose 1% in the reported period, excluding the consumer businesses acquired from GlaxoSmithKline Plc and VWash.

  • The company declared an interim dividend of Rs 14 per share for 2020-21.


Segments Performance:

  • HUL’s health, hygiene and nutrition segment, which is 80% of its portfolio, grew 10% in the September quarter, on a YoY basis.

  • Contraction in its discretionary category comprising cosmetics, deodorants and ice-cream, which is 20% of the portfolio, narrowed. In the September quarter the decline was 25% y-o-y compared to a 45% decline in the June quarter.

  • In Beauty & Personal Care Segment Oral Care and Hair Care showed double digit growth. Oral Care Double-digit growth led by Close Up

  • Skin cleansing grew in double digits on the back of a very strong performance in ‘Lifebuoy’. Hand sanitizers and hand wash segments continued to gain penetration and have delivered robust growths

  • HUL Food and Refreshment Segment grew 19% excluding merger impact of GSK Consumer.

  • In Foods & Refreshment Tea and coffee continue to outperform. Double digit growth across Tea brands; unprecedented tea inflation managed well

  • Both Kissan and Knorr seeing strong consumer traction

  • The company is witnessing raw material inflation in some of the categories.

  • Household care grew double digit driven by Domex, the range has expanded pan India in Q2

  • The company cut prices in its fabric wash category by 2.5% to pass the benefits of lower input costs.

Management commentary:

  • Commenting In the context of a challenging economic environment, our growth has been competitive and profitable,” Sanjiv Mehta, chairman and managing director at HUL, said in a post-earnings call. “Rural markets have been resilient but demand in urban markets, especially metros has been muted.”

  • All-round Cautious Optimism: The worst is possibly behind us; business picking up momentum

  • Rural growths looking resilient and need to sustain. Urban demand outlook uncertain

  • Inflation in select categories to continue; gross margins likely to remain under pressure

  • The management expects demand for items such as skin care and deodorants to improve as people start moving out of their homes. However, rural demand is expected to grow faster than urban demand

  • HUL has increased direct coverage by 10% from the pre-covid levels, while ecommerce contribution and growth up 2x at 6%.


HUL Revenue for the Q2FY21 beats the street estimates, however profit impacted due to higher raw material cost and tax. Though higher input prices would put margins under pressure in the near term, the management has maintained outlook of sustenance of modest margin expansion in the coming years. Oral Care is seeing healthy growth since past few quarters owing to recovery in Close-up brand Managements has a strategy in mind to revive growth of Pepsodent, which is flagging brand. We remain positive on Hindustan Unilever from a long-term perspective, encouraged by robust earnings growth potential beyond the near term owing to its portfolio and execution strengths, and significant synergies in FY22E as a result of acquisition Horlicks and boost from GlaxoSmithKline. The company’s earnings growth has gained further momentum in recent years growing at 18% EPS CAGR in the past 5 years. Valuing the company at 58x FY21E merged EPS, we recommend buy on HUL for the Target Price of Rs. 2,600.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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