Mergers and Acquisitions Management PowerPoint Presentation Slides
HUL FIIB
1.
2.
3. HUL has one of the widest portfolio of products sold via a strong distribution
channel.
It owns and markets some of the most popular brands in the country across various
categories, including soaps, detergents, creams
HUL’s net sales have recorded a CAGR of more than 11% over the past three
years, while its net profit has posted a CAGR of 17% during the same period.
High dividend yield, steady growth and strong categories have enabled HUL to
command premium valuations, compared to other companies.
4. This project report is based on future projection of balance sheet and profit
& loss statement for year 2016 & 2017 of company named (HUL) .
The basis of projection being the past 5 years trends of HUL & the FMCG
Industry.
We have also done analysis of the projected financial statements of HUL.
5. HUL was established in 1933 as Lever Brothers
and, in 1956, became known as Hindustan Lever
Limited, as a result of a merger between Lever
Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and
United Traders Ltd.
The company was renamed in June 2007 as
"Hindustan Unilever Limited".
.HUL is the market leader in Indian consumer
products with presence in over 20 consumer
categories such as soaps, tea, detergents and
shampoos amongst others, with over 700 million
Indian consumers using its products.
Hindustan Unilever's distribution covers over 2
million retail outlets across India directly and its
products are available in over 6.4 million outlets in
the country.
6. Mr. Harish Manwani
(Non-Executive Chairmen)
Mr. Nitin Paranjpe
(Managing Director
and
Chief Executive
Officer )
Mr. Sridhar Ramamurthy
( Executive Director, Finance
&
Mr. Pradeep
Banerjee
(Executive
Director, Supply
Chain )
7. Work to create a better future every day.
Help people feel good, look good and get more
out of life with brands and services that are good
for them and good for others.
Will inspire people to take small everyday
actions that can add up to a big difference for the
world.
Will develop new ways of doing business with
the aim of doubling the size of our company
while reducing our environmental impact.
8. • To study the financial REPORTS of one of the most
reputed public firm, engaged in FMCG industry.
• Identify the significant financial trends that relates to the
projection of the financial position of the company in the
next 2 years.
• Prepare projected financial statement of HUL for the FY
2016 & 2017
PRIMARY OBJECTIVE
• Prepare projected financial statements of
HUL for the FY 2016 & 2017
SECONDARY
OBJECTIVE
10. SOURCE OF DATA
• The data extracted for the purpose of analysis is from reliable
sources namely business today and economic times.
• Income statement and balance sheets of all the companies were
collected from their respective websites.
PERIOD OF ANALYSIS
The period taken into consideration for the purpose doing financial
analysis of HUL is :-
Financial year (FY) 2010 -2011/
11. TECHNIQUE USED FOR ANALYSIS
The technique used for the financial analysis is the growth rate analysis and estimation of financials.
of financials.
The analysis is used to provide estimation of future financial health of the company on the basis of its past
the basis of its past performances, in comparison with the performance of the industry it is in.
it is in.
. Such estimation provide assistance in decision-making and reduces reliance on guesswork and intuition
guesswork and intuition and establishes a basis for sound judgment.
COMPANIES USED FOR CALCULATION OF INDUSTRY
TRENDS:-
GODREJ CONSUMER PRODUCTS LTD,
DABUR INDIA LTD,
COLGATE PALMOLIVE(INDIA)LTD, and
EMAMI
17. Column1 Column2 Column3 Column4 Column5 Column6 Column7 Column8
BALANCESHEETOF HUL FOR HALF YEAR ENDED 30/09/15FOR THEYEAR ENDED 31/03/2016 GROWTH RATE ASSUMPTIONS FOR THEYEAR ENDED 31/03/2017 FOR THEYEAR ENDED 31/03/2018
BASIS %
EQUITYAND LIABILITIES
Shareholders’ funds
(a)Share capital 216 432.78 HUL GROWTH 0.000462794 THEAMOUNTOF CAPITAL REQUIRED FOR THEBUSINESS IS THE 432.980288 433.1806687
(b)Reserves and surplus 5,538 11076 HUL GROWTH 0.121568394 SOLEDISCRETIONOF THECOMPANY ITSELF. 12422.49153 13932.67388
Non-current liabilities
(a)Other long-term liabilities 132 264.08 HUL GROWTH 0.036038682 THEAMOUNTOF DEBTTOBERAISED FROMTHEMARKETOR PUBLIC 273.5970951 283.4571739
(b)Long-term provisions 1,284 2567.42 HUL GROWTH 0.097840982 ALSODEPENDS ONTHECOMPANY'S OWNPOLICIES. 2818.618894 3094.395334
Current liabilities
(a)Trade payables 5,571 11142.16 INDUSTRYGROWTH -0.039301025 MOSTLYCURRENTLAIBILITIES OF ANYCOMPANYDEPENDS ONTHE 10704.26169 10283.57323
(b)Other current liabilities 117,298 234596 INDUSTRYGROWTH -0.040813358 INDUSTRY'S CREDITPOLICIES, PREVALENTPRICES,ETC. 225021.3495 215837.4726
(c)Short-term provisions 244 487.86 HUL GROWTH 0.260270899 PROVISIONS TOBEMADEDEPENDS ONCOMPANY'S OWNPOLICIES 614.8357608 774.859617
TOTAL -EQUITYAND LIABILITIES 14,158 28316.26 28316.26 28316.26
ASSETS
Non-current assets
(a)Fixed assets 3,049 6098.78
Tangible assets 2,480 4960 HUL GROWTH 0.034112692 THEAMOUNTTOBEINVESTED INFIXED ASSETS DEPENDS ONTHE 5129.198952 5304.169736
Intangible assets 40 80 HUL GROWTH -0.09242671 COMPANIES INTERNAL POLICIES OF PRODUCTION, INFRASTRUCTURE 72.6058632 65.89514214
Capital w ork-in-progress 500 1000 HUL GROWTH 0.250719735 TRANSPORTATION, PATENTING, ETC. 1250.719735 1564.299856
Intangible assets under development 29 58 HUL GROWTH -0.527720066 27.39223617 12.93680349
(b)Non-current investments 654 1308.22 HUL GROWTH 0.668910314 COMPANYTAKES ITS OWNDECISIONAS TOHOW MUCH LONG TERM 2183.301851 3643.734978
(c)Deferred tax assets (net) 225 450.14 HUL GROWTH -0.00522194 INVESTMENTITHAS TOMAKEOR AMOUNTOF TAX TOBEPAID AFTER 447.7893959 445.4510666
(d)Long-term loans and advances 545 1089.76 HUL GROWTH 0.124728702 SELF ASSESMENTOR ANYLONG TERMLOANTOBEGIVENOR NOT 1225.68435 1378.562368
(e)Other non-current assets 0.77 1.54 HUL GROWTH -1 0 0
Current assets
(a)Current investments 2,076 4151 INDUSTRYGROWTH 0.266465173 CURRENTASSETS SUCH AS TRADERECEIVABLE, INVENTORIES, SHORT 5257.096933 6657.930177
(b)Inventories 2,352 4704.12 INDUSTRYGROWTH -0.133782095 TERMADVANCES ETC DEPENDS ONTHEINDUSTRYPOLICIES OF 4074.792971 3529.658631
(c)Trade receivables 1,101 2201.88 INDUSTRYGROWTH -0.185405569 COLLECTION, INVENTORYVALUATION, PAYMENTS,ETC RESPECTIVELY. 1793.639186 1461.088492
(d)Cash and bank balances 3,415 6830.38 INDUSTRYGROWTH 0.063777507 7266.004608 7729.412268
(e)Short-term loans and advances 628 1256.94 INDUSTRYGROWTH -0.125538415 1099.145745 961.16073
(f)Other current assets 112 223.5 INDUSTRYGROWTH -0.190957865 180.8209172 146.2917409
TOTAL -ASSETS 14,158 28316.26 0.076708885 30488.36873 32827.0975
18. Column1 Column2 Column3 Column4 Column5 Column6 Column7 Column8
STATEMENT OF P&L OF HUL AS ON 30/09/2015 AS ON 31/03/2016 GROWTH ASSUMPTIONS AS ON 31/03/2017 AS ON 31/03/2018
PARTICULARS BASIS %
1.a. Net Sales from Operations (Net of excise duty) [sum of (i) to (iii)] 15,793 31586.02HUL GROWTH 0.30489799sales volume is decided by the company itself 41216.53401 53783.37238
1.b. Other Operating Income 268 535.02HUL GROWTH 0.12005818operating income are generated by company's independent operations 599.2535275 671.1988153
Total Income from operations (net) [1.a. + 1.b.] 16,061 32121.04 41815.78754 54454.5712
Expenses [sum of (a) to (f)]
a) Cost of materials consumed 5,741 11481.22HUL GROWTH 0.12087079quantity of material procured at what price,what quantity of stock-in 12868.96414 14424.44602
b) Purchases of stock-in-trade 1,998 3996.42HUL GROWTH 0.07056101trade shall be purchased are company's own decision. 4278.411416 4580.300429
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade 63 125.3INDUSTRY GROWTH #REF! valuation processes of the stocks are decided by the industry. #REF! #REF!
d) Employee benefits expense 744 1488.64HUL GROWTH 0.13281764the company provides benefit to its employee as per its discretion. 1686.357647 1910.335685
e) Depreciation and amortisation expense 151 302.14INDUSTRY GROWTH #REF! depriciation method is decided by the industry. #REF! #REF!
f) Other expenses 4,682 9364.88INDUSTRY GROWTH #REF! other expenses are nothing but common industry expenses #REF! #REF!
Profit from operations before other income, finance costs and exceptional
items (1-2) 2,681 5362.44 #REF! #REF!
Other income 279 557.54 SAME 557.54 557.54
Profit from ordinary activities before finance costs and exceptional items
(3+4) 2,960 5919.98 #REF! #REF!
Finance costs 0.1 0.2INDUSTRY GROWTH #REF! The company inccurs and maintains its debts in accordance with the #REF! #REF!
Profit from ordinary activities after finance costs but before exceptional
items (5-6) 2,960 5919.78 prevalent industrial practises. #REF! #REF!
Exceptional Items - net credit/ (charge) -2.38 -4.76HUL GROWTH #REF! the company is free to decide whether to have exceptional #REF! #REF!
Profit from Ordinary Activities Before Tax (7+8) 2,958 5915.02 expensses or not. #REF! #REF!
10. Tax expense 936 1872.26HUL GROWTH 0.40325281amount of tax to be paid is decided by the company itself as per the 2627.254099 3686.701686
11. Net Profit from Ordinary Activities After Tax (9-10) 2,021 4042.76 laaw through self assessment. #REF! #REF!
12. Extraordinary Items 0 0 0 0 0
13. Net Profit for the period (11+12) 2,021 4042.76 #REF! #REF!
14. Paid up Equity Share Capital (face value Re. 1 per share) 216 432.78HUL GROWTH 0.000462794 The amount of capital to be raised by the company is its sole 432.980288 433.1806687
16.i Earnings Per Share (EPS not annualised): discretion based on its rrequirements. 0
(a) Basic - Rs. 9.34 18.68 #REF! #REF!
(b) Diluted - Rs. 9.34 18.68 #REF! #REF!
24. Constant increase in net sales as compared to the current year indicating increase in the
sales volume in coming years.
Constant decrease in total expenses indicating that the company would be
capitalizing on the benefits of economies of scale.
Throughout increase in finance cost suggesting that the company would be
planning for debt financing in future rather than issuing share
Continuous increase in short-term provisions reflecting the company’s adherence
to the conservatism principle, where by it is providing more & more for anticipated
losses
Constant increase in tax expenses (assumed direct) due to higher sales
Throughout increase in profit there would be increased sales and decrease in expenses
25. Huge and constant increase in EPS can be contributed to the benefits of “trading on equity” that
the company would be capitalising on by opting for more of borrowed funds.
Continuous but slight increase in reserves suggesting that the company is retaining less
and distributing more dividends.
The increase in long term liabilities of the company throughout is suggestive of the fact
that our assumption of higher debt funding by it, is absolutely correct.
High continuous increase in cash suggests that the company has more of cash profits
Continuous increase in tangible assets along with debts can be contributed to the fact that the
company is planning for expansion of scale of its business.
