Financial Analysis

of
Hindustan Unilever Limited
P&G Hygiene and Health
Dabur India Limited
 INTRODUCTION

About Hindustan Unilever Limited (HUL)

HUL is always driven by a sense of purpose. Unilever’s very birth celebrated the belief that business must have
purpose beyond profit. It continued to believe that business must make a positive contribution to addressing the
challenges the world faces and that this is the only way a business will succeed.
HUL is driven by purpose: to make sustainable living commonplace
With over 85 years of heritage in India, Hindustan Unilever Limited (HUL) is India’s largest fast-moving
consumer goods company. On any given day, nine out of ten Indian households use HUL products, giving them
a unique opportunity to build a brighter future. It is known for great brands; the positive social impact it creates.
HUL works to create a better future every day and helps people feel good, look good and get more out of life
with brands and services that are good for them and good for others. HUL has three divisions namely Beauty &
Personal Care, Home care and Foods & refreshment. HUL consists of 44 brands covering 14 distinct categories
such as fabric solutions, skincare, home and hygiene, haircare etc.
In FY21, HUL gained market share in 84 per cent of its portfolio. According to the Management, the company
now has 14 brands with over Rs. 1,000 crore in annual sales compared to the 12 brands in FY20. HUL sales
among from digital medium, at 10 per cent, has been the highest among peers.

Key awards received by HUL in the last five years

• ‘The Shower’ film on water conservation won the 67th National Film Awards in the ‘Non-Feature Films’
category in 2020-21
• HUL was selected as one among the top 10 ‘Responsible Business of the Year’ by the Social and Business
Enterprise Responsible Awards for the year 2020 in 2020-21.
• HUL declared ‘BW Pure: Purpose-led Company of The Year’ by Business world in 2019-20.
• HUL alongside Star India were declared joint winners as Effie India Client of the Year in 2019-20.
• HUL won the Business Standard Company of the Year award in 2018-19.
• HUL won the coveted Economic Times Corporate Citizen of the year 2018 award in 2018-19.
• HUL was adjudged the winner of the Confederation of Indian Industry National Award for Excellence
in Water Management 2017 under the ‘Beyond the Fence’ category in 2017-18.
• HUL adjudged the Most Innovative Company in India, in Forbes’ list of the World’s Most Innovative
Companies, 2017 in 2017-18.

Peer Group of HUL

Nestle India, Dabur India, Godrej Consumer, Britannia Industries, Marico, P & G Hygiene, Colgate-Palmolive,
Varun Beverages

Major News
2021:
To ensure consumers have access to their favourite ice creams, HUL Partnered with Zomato and Swiggy.
Completed the acquisition of hygiene brand VWash.
HUL has provided Covid-19 medical insurance for all those who work at the front end across its supply chain
and sales.
HUL eB2B app, Shikhar enabled its retail partners to place contact less orders conveniently. It has 5 lakh retailers
order through Shikhar. HUL has 1,36,000 Shakti Entrepreneurs.
Total Dividend payout of Rs.9,500 crores during the year.
In April 2020, Successfully completed the integration of the GlaxoSmithKline Consumer Healthcare Limited
(GSK CH) business into HUL. The merger, one of biggest in the India FMCG space
2019:
HUL delivered over Rs. 8,500 crores of EBITDA, EBITDA margins are at its highest ever at 22.9% and Profit
crossed Rs. 6,000 crores mark for the first time.
Acquired Adityaa Milk to expand ice creams business.
2018:
Lakme brand crossed the Rs. 1000 crores mark.

Industry Outlook
FMCG sector is the 4 th largest sector in the India economy boosting India’s GDP. The urban consumption of
FMCG products is increasing at a faster rate. Recent years have seen the growing demand from the rural and
semi-urban areas of India. The market size of the concerned sector in 2011 was US$ 31.6 billion, in 2015 it was
US$ 43.1 billion and it is estimated to reach US$ 103.7 billion in 2020. But, in the financial year (FY) 2019, the
market has been moving very sluggish due to certain reasons.
But after the introduction of GST, there has been a fall in the revenue collected from the rural areas in the FMCG
sector. This decade has also witnessed steep competition between various new players. But the giant share of the
industry is dominated by the most reputed names like Dabur (60%), Colgate (54.7%) and Hindustan Unilever
(54%). With the break of this decade in 2010, the country has experienced some major changes like Digital
Revolution, Technological Revolution and Economic Revolution. The increasing health and nutrition awareness,
beauty consciousness and higher expendable income of the contemporary Indian user base are leading to the
development and booming of several FMCG sub-sectors like air and water purifier, organic food staples and
supplements etc.
The government of India has allowed 100% Foreign Direct Investment (FDI) in single-brand retail and food
processing and 51% in multi-brand retail. This would boost employment and supply chain, increase the visibility
of FMCG retail brands and encourage more product launches. According to a report in 2015 by India Brand
Equity Foundation (IBEF), personal care and makeup contribute to 47% of the total revenue in this sector. By
the end of the decade, several brands are investing in this sector with new product launches in various parts of
the country.
In May 2018, Sanjeev Goenka Group invested US$ 14.92 million in a start-up in the FMCG sector. The closing
of the decade has seen brands like ITC, Sunfeast, Future Group investing in this sector. The government has
prepared Consumer Protection Bill for ensuring speedy, cost-effective and efficient business in the FMCG sector.
Thus securing the needs of the consumers. Though GST has enabled the products of FMCG sector to come under
a single tax bracket, still the growth has been affected.
The pattern of modern retail has elevated the brand consciousness in the minds of the consumers. The
unstructured and unorganized FMCG sector has a long way to go to match the pace with other active sectors like
insurance and automotive. The various sub-sectors thrive across the diverse economic sectors like urban, semi-
urban and rural. The demand for personal care, health care, feminine hygiene, monthly packs of commodities
and household items is much higher in urban and semi-urban areas. The demand for fabric care, hot beverages
and tobacco is higher in rural areas. Growing smartphone penetration and internet interconnectivity, expansion
of eCommerce retail sector is directly responsible for formalising the FMCG sector in India.
Few Peer companies in the same industry segment are:
ITC, Nestle, Britannia, Dabur, Godrej Group, Colgate-Palmolive, P & G Hygiene

1) P&G Hygiene & Health

Procter & Gamble Hygiene and Health Care (P&G) headed from Ohio, United States is being operated by over
300 brands. Vision and Mission of P&G to be recognized as the best consumer products and service all over the
globe.
Ranked No 5 among the “Global most Admired Companies” is expecting a combined foreign exchange inflow
worth 75 Billion USD and investments > 1 Billion USD by 2025.
P & G has a focused portfolio of 10 categories that leverage P&G strengths.
The 10 categories of P&G are Personal Health care, Oral care, Fabric care, Home care, Skin & Personal care,
Hair care, Grooming, Baby care, Feminine Care, Family care and P&G Ventures.
Current year sales of Rs. 3,574 crores, up 19% vs year ago and Profit After Tax of Rs. 652 crores, up 51% vs
year ago.

2) Dabur India Ltd

Dabur India Ltd started with a small vision of providing affordable and effective cure to ordinary people even in
remote villages. Headed from Ghaziabad, Uttar Pradesh. Dabur operates in key consumer product categories like
Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods.
• The Market-cap of touched the Rs. One Trillion mark.
• The Consolidated Gross sales topped Rs. 10,000 crore for the first time and the consolidated operating
profit exceeded Rs. 2,000 crore.
• Dabur Red Paste touched Rs. 1,000 crore mark
• Health Supplement portfolio increased by Rs.500 crore.
 Common Size Analysis
Common-size analysis also known as Structural analysis or Vertical analysis, is a powerful tool for analysing and understanding structure of Financial statements
of a company. It converts Rupees to Percentage making the comparison more meaningful across different size-companies.
HUL outperforms P&G and Dabur in terms of Assets. There is an increase in total assets as well as Equity of HUL from 2017 to 2021.The intangible assets and
Goodwill constitute 41% and 25.4% respectively in 2021 that have seen an exponential growth. There is a decline in the Property, Plant and Equipment.
Nevertheless, Non-current assets contribute to the increase in the Total assets as compared to Current assets.

HUL P&G
HUL 100% 100.00%
100.00%
80% 80.00%
80.00%
60% 60.00%
60.00%
40% 40.00%
40.00%
20.00% 20% 20.00%

0.00% 0% 0.00%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

Equity Non-Current Liabilities Current Liabilities Non-current Assets Current Assets Non-current Assets Current Assets

Dabur P&G Dabur

100.00% 100.00% 100.00%

80.00% 80.00% 80.00%

60.00% 60.00% 60.00%

40.00% 40.00% 40.00%

20.00% 20.00% 20.00%

0.00% 0.00% 0.00%

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

Non-current Assets Current Assets Equity Non-Current Liabilities Current Liabilities Equity Non-Current Liabilities Current Liabilities
On the analysis of the above charts shows that the Non-current assets of HUL has increased from 40% in 2020 to 80% in 2021 due to the Goodwill and Intangible
additions on account of the integration of GlaxoSmithKline Consumer Healthcare Limited in to HUL. The Equity portion of the HUL has increased from 40% in
2020 to 70% in 2021 due to the issue of shares on account of acquisition of GSK CH during the year and internal accruals.
In case of P&G, the Non-current portion of assets has decreased from 40% in 2017 to 30% in 2021 and the company has to think of investing in its PPE also. In
the recent times the current liabilities portion is also increasing due to rise in Trade payables. The Equity portion of the company has decreased to a great extent in
year 2021 due to distribution of Rs. 1103 crore as dividend pay-out.
In case of Dabur, the Non-current assets portion of has increased in 2021 due to investment in Govt. Bonds by the Company. The Equity portion constitutes around
75% of the total liabilities which indicates that the company is accruing all its internal earnings without much distribution to its investors. The Company has to plan
for new investments or new line of business or product as it has much of idle funds in investments other than subsidiaries.

HUL has seen steady growth in Revenue from operations and Profit compared to its peer companies P&G and Dabur. HUL has seen an increase in Profit from
12.8%(2017) to 17.1%(2021) post implementation of GST. The Company is successful in handling increase in cost of material consumed at par with the increase
in revenue and there by the company is successful in improving its profit percentage

HUL P&G Dabur

100.00% 100.00% 100.00%
80.00% 80.00% 80.00%
60.00% 60.00% 60.00%
40.00% 40.00% 40.00%
20.00% 20.00% 20.00%
0.00% 0.00% 0.00%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

Expenses Tax Expenses Profit Expenses Tax Expenses Profit Expenses Tax Expenses Profit

The Revenue from Sales of P&G has increased from 97% in 2017 to 99% in 2021 but the Cost of material consumed has decreased from 41% in 2017 to 32% in
2021 but the current tax percentage has decreased from 10% in 2017 to 6% in 2021 due to adoption of new corporate tax rate of 25.16% in year 2021 from 24.608%
in 2017.
Dabur has maintained all the rise in the expenditures in line with the increase in sales there by it recorded a steady profit percent from Year 2017 to Year 2021.
 PROFITABILITY RATIOS

Profitability Ratios Method of Calculation Purpose

Gross Profit/ Revenue from Operations
Gross Profit = Total Sales-Cost of material consumed- The gross profit margin represents how efficiently the company
Gross Profit Margin
Purchase of Stock-in-trade-Changes in inventory-excise generates profit from sales of products or services.
duty
Operating Profit/Revenue from Operations
The operating Profit margin represents how efficiently a company is
Operating Profit Margin Operating Profit = Gross Profit-Depreciation- able to generate profit through its core operations
Employee benefit expenses-Other Expenses
It measures the relationship between net profit and sales of the
Net Profit Margin Net Profit/Total Revenue
business
EPS indicates how much money a company makes for each of its
Earnings Per Share Net Profit/No. of Shares
share
Net Profit/Net worth It measures the profitability of equity funds invested in the Company.
The ratio reveals how profitability of the equity-holders’ funds have
Return on Equity
been utilized by the Company. It also measures the percentage return
Net worth = Equity share capital + other equity generated to equity- holders.
Return on investment (ROI) is a financial ratio used to calculate the
Return on Investment EBIT/Total Assets benefit an investor will receive in relation to their investment cost.
The higher the ratio, the greater the benefit earned.
It measures how efficiently a company is at generating sales from its
Return on Fixed Assets EBIT/Tangible fixed assets existing fixed assets. A higher ratio implies that management is using
its fixed assets more effectively.
 Hindustan Unilever Ltd. P&G Hygiene & Health Dabur India Ltd.
Profitability Ratios
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Gross Profit Margin 53% 54% 53% 52% 47% 68% 63% 58% 61% 58% 49% 49% 48% 48% 47%
Operating Profit
Margin 22% 22% 21% 19% 16% 23% 19% 19% 23% 25% 20% 20% 20% 20% 19%
Net Profit Margin 17% 17% 16% 15% 13% 18% 14% 14% 15% 17% 19% 18% 19% 18% 18%
Earnings Per Share 33.85 31.12 27.88 24.19 20.75 200.79 133.42 129.12 115.40 133.31 7.82 6.62 7.16 6.09 5.67
Return on Equity 17% 84% 79% 74% 69% 91% 37% 46% 47% 82% 26% 26% 32% 25% 27%
Return on Investment 15% 44% 45% 40% 38% 51% 30% 34% 40% 52% 19% 21% 23% 19% 20%
Return on Fixed
Assets 178% 187% 208% 180% 155% 455% 269% 239% 225% 212% 125% 118% 129% 116% 111%

1. There is a steady growth in the profit margins of HUL from the year 2018 to 2021 but there is significant growth in all the ratios of the HUL between 2017
and 2018 due to reduction of excise duty from Rs.2597cr to Rs. 693cr on introduction of GST on July 01, 2017.

2. HUL is performing better when compared to its peers P&G, Dabur in respect of all ratios. its return on Equity, Investments are higher than P&G, Dabur but
return on Fixed assets is lesser when compared to P&G but seems good when compared to Dabur.

3. Return on Equity has reduced from 84% in 2020 to 17% in 2021 due to issue of new share capital due to new business combination.

4. Return on investments, fixed assets has decreased due to the new addition in assets on account of business combinations.

5. The EPS of P&G is higher due to the less no. of issued shares compared to HUL and Dabur India.

Note:
Net profit margin is calculated by using total Revenue and Gross Profit margin and operating profit margin is calculated using revenue from operations
 100%
Hindustan Unilever Limited 80%
Dabur India Ltd.
100% 60%
80% 40%

60% 20%

40% 0%
2017 2018 2019 2020 2021
20%

0%
2017 2018 2019 2020 2021 Gross Profit Margin Operating Profit Margin
Gross Profit Margin Operating Profit Margin Net Profit Margin Net Profit Margin Return on Equity
Return on Equity Return on Investment Return on Investment

P&G Hygiene & Health

100%

80%

60%

40%

20%

0%
2017 2018 2019 2020 2021

Gross Profit Margin Operating Profit Margin Net Profit Margin

Return on Equity Return on Investment
 LIQUIDITY RATIOS
Liquidity Ratios Method of Calculation Purpose
Gross working capital includes assets such as cash, accounts receivables, inventory, short-
Gross working capital Total Assets term investments and marketable securities. It helps to ascertain financial standing and
capability to repay liabilities adequately
Total current assets - Total It gives an idea of business liquidity and whether the company has enough money to cover
Net working capital
current liabilities its short term obligations
Cash Flow From Operating Activities. From cash flow statement Cash flow indicates the immediate health of a company. Cash flow is an important factor
that helps determine a company’s ability to pay its current taxes
Total current assets/Total It helps in understanding how cash rich a company is. It helps us gauge the short-term
Current Ratio financial strength of the company. Higher the ratio more stable the company is. Lower the
current liabilities
ratio greater is the risk of liquidity associated with the company.
(Total current assets-
Inventories)/Total current It measures a company's capacity to pay its current liabilities without needing to sell its
Quick Ratio liabilities inventory.
It is most commonly used as a measure of company’s liquidity. If the company is forced to
Cash and Cash Equivalents to Current Cash & cash equivalents/ Total
pay all the current liabilities immediately, this metric shows the company’s ability to do so
Liabilities current liabilities
without having to sell or liquidate other assets.
cash flow from operating
activities/ Revenue from It shows how effectively a business is able to convert its earnings into cash. The higher it is
Cash Conversion Efficiency Ratio operations the better it is.
Trade receivables/Revenue from
Average collection period (days) operations It is a helpful tool in figuring out how fast a company is receiving payments.
It is the measure of the average number of days it takes a business to pay its vendors for
purchase made on credit. A shorter payment period indicates prompt payment to creditors. It
Trade payables/ Cost of material
Average payment period (days) also indicates creditworthiness of a company. But a very short payment period may be an
consumed
indication that the company is not taking full advantage of the credit terms allowed by
suppliers.
It is equal to the number of days between the date that materials are acquired and the date
Inventories Conversion Period (days) Inventories/ Cost of goods sold that a product or service is sold.
Inventories conversion period+
Operating Cycle It is the average period of time required for a business to make an initial outlay of cash to
Trade Receivables
produce goods, sell the goods, and receive cash from customers in exchange for the goods.

Cash Conversion Cycle Operating cycle- Trade payables It is an important metric for a business to determine the efficiency at which a company is
able to convert its inventory into sales and then into cash.
 Hindustan Unilever Ltd. P&G Hygiene & Health Dabur India Ltd.
liquidity Ratios 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Gross working capital 13640 11908 11374 11139 9411 1117 1328 1091 836 603 2830 3265 2124 1959 1784
Net working capital 2799 2804 3021 2503 2209 282 733 433 265 -27 794 1823 606 724 577
Cash Flow From Operating
Activities. 8957 7305 5728 5913 4953 863 474 412 415 445 1704 1155 1124 816 927
Current Ratio 1.3 1.3 1.4 1.3 1.3 1.3 2.2 1.7 1.5 1.0 1.4 2.3 1.4 1.6 1.5
Quick Ratio 0.9 1.0 1.1 1.0 1.0 1.0 1.9 1.3 1.2 0.7 0.8 1.7 0.9 1.0 1.0
Cash and Cash Equivalents to
Current Liabilities 0.2 0.3 0.1 0.1 0.1 0.8 1.5 0.8 0.7 0.2 0.0 0.0 0.0 0.1 0.0
Cash Conversion Efficiency Ratio 0.2 0.2 0.1 0.2 0.1 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.1 0.2
Average collection period (360
days) 13 10 16 12 10 14 20 22 22 20 14 22 25 21 22
Average payment period (360 days) 143 150 142 156 138 234 173 160 154 143 144 115 110 119 114
Inventories Conversion Period (360
days) 56 53 49 50 47 77 67 59 47 63 108 90 81 87 75
Operating Cycle 69 63 64 62 56 92 87 81 69 83 123 111 106 108 98
Cash Conversion Cycle -74 -87 -77 -94 -82 -142 -86 -78 -85 -60 -22 -3 -5 -12 -16

1. The Gross Working Capital of HUL is very healthy when compared to P & G, Dabur. There is a continuous improvement in the Gross working capital of
the Company.
2. The Net working capital has increased when compared to the year 2017 but decreased when compared to Year 2019 due to increase in Trade Payables
3. The Company is constantly maintaining the its current ratio at 1.3 but it has to achieve the current ratio of 2 which is achieved by Dabur and P & G in few
years.
4. The Company is constantly maintaining the Quick ratio around 1 which looks fine.
5. The Company Cash and Cash Equivalents to Current Liabilities is around 0.2 which needs to be improved and it shows that the company is not maintaining
the cash on hand
6. The company is able to generate Cash flow of 0.2 only out of total sales it makes but it is at par with its peers.
7. There is a fluctuation in the Average collection period when compared YOY but its collection period looks fine when compared with its peers.
8. There is a fluctuation in the Average Payment period when compared YOY but its fine when compared with P&G. but the company should think of reducing
the Payable period as the average is 150 days which is nearly 5months.
9. The company is able to maintain its inventory levels constantly when compared with its peers.

"on an overall analysis the company takes around 65 days for realization of cash but it pays to its creditor after 150 days which shows that it is enjoying the cash
earned for nearly 80 days but the cash available to pay the liabilities is around 0.2 only. So, the company has to analyse the utilization of funds and make sure that
proper liquidity is maintained to pay off the liabilities and also think to reduce the Payment period as it brings positive attitude in the minds of Suppliers towards
Company. if the same case is checked the Dabur, Dabur takes 115 days to realize the cash and it pays the creditors also around the same time without maximum
time gap."
Assumptions:
1. Cash flow from Operating Activities is considered from Cash Flow Statement
2. In computation of Cash conversion efficiency ratio and Average collection period Revenue from Operations is considered
3. Assumed cost of Material consumed includes Material consumed, Purchases of Stock in trade and changes in inventory for computation of Average Payment
Period
4. Cost of goods sold is derived by adding Material consumed, Purchase of Stock-in-trade, changes in inventory and Excise duty for computing average inventory
conversion period

Solvency Ratios:

Solvency Ratio Method of Calculation Purpose

Debt Equity Ratio Long term Debt/Equity Debt-to-equity ratio compares a Company’s total debt to shareholder’s equity.
Both of these numbers can be found in a Company’s balance sheet.
Equity Multiplier Total Assets/Equity The equity multiplier is a financial leverage ratio that measures the amount of
a firm's assets that are financed by its shareholders by comparing total assets
with total shareholder's equity.
Total Debt to Equity (Short term debt + Long term Debt)/Equity The debt-to-equity (D/E) ratio compares a company's total liabilities to its
shareholder equity
Net Worth Share Capital + Reserves and Surplus It is available surplus for the investors
Interest Coverage Ratio EBIT/Interest The interest coverage ratio is a debt and profitability ratio used to determine
how easily a company can pay interest on its outstanding debt.
Cash flow from Operating activities to Cash flow from Operating activities/Total How much cash is generated through operating activities to pay off the
Total Liabilities Liabilities liabilities
 Hindustan Unilever Ltd. P&G Hygiene & Health Dabur India Ltd.
Solvency Ratio
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017
Debt Equity Ratio - - - - - - - - - - 0.00 0.01 0.01 0.05 0.06
Equity Multiplier 1.44 2.44 2.33 2.42 2.27 2.29 1.58 1.80 1.77 2.21 1.39 1.33 1.41 1.38 1.43
Total Debt to Equity - - - - - - - - - - 0.03 0.02 0.03 0.07 0.08
Net Worth 47,434 8,031 7,659 7,075 6,490 714 1,158 909 806 526 5,391 4,574 3,969 4,227 3,658
Interest Coverage Ratio - - - - - - - - - - - - - - -
Cash flow from Operating
activities to Total Liabilities 0.43 0.63 0.56 0.59 0.60 0.94 0.71 0.57 0.67 0.70 0.81 0.76 0.70 0.51 0.59

The increase in Equity Multiplier indicates that the assets contributed by shares holders are decreasing and Equity multiplier of HUL decreased from 2.27 to 1.44 due to
issue of new share capital but the equity multiplier of Dabur is constant.
The Net worth if HUL is increased in 2021 due to issue of shares of acquisition of GSK CH and the Net worth of P&G decreased due to dividend pay-out in the Year
2021 and the Net worth of Dabur has increased due to the profits earned during the year.
HUL and P&G are debt free companies but there is small amount of debt in Dabur.
Cash flow generation from operating activities to meet the outside liabilities is decreasing in HUL when compared between 2017 to 2021 but in case of P&G and Dabur
the Cash flow generation from Operating activities to meet the outside liabilities is increasing constantly which is a better indicator. So HUL has to take care with regard
to the generation of cash flow from operating activities to meet the outside liabilities.

Note:
Equity includes Share Capital and Other Equity
Interest coverage ratio is Nil as there is no debt in HUL and P&G and in Dabur though there is a small amount of debt interest coverage is not calculated as the
finance cost includes the Bank charges and Interest cost on Lease Liability
No adjustments made with respect to Income tax assets and liabilities in HUL.
 Conclusion:
On an analysis of HUL financials and after comparison with its peers we come to the below conclusions.
1. The Revenue of HUL has increased by 18.50% compared to previous year after integration of GSK CH
and the profit for the year also increased by 18% compared to the previous year which looks good but when
compared the profit to the sales the profit percent remains same with the previous year with no
improvement.
2. The decrease in cash flow from operating activities to current liabilities is an indication of future cash crisis
and it should be carefully observed and the company should find out reasons and should be maintained at
least above 0.5.
3. The company should take steps to reduce the payable days as the existing payable days may create a
negative opinion in the minds of creditors.
4. The Return on Equity has decreased due to the issue of new shares on the combination of GSK CH and
company has to take steps to bring back the rate which means that the performance of the company has to
be increased to a great extent
5. PE ratio of HUL is 65.54 which is less compared to P&G 79.66.
6. P&G has declared a dividend of Rs.315 during the 2021 financial year and HUL has declared a dividend
of Rs.40.50 which effects the sentiments of Investors but the company should give assurance to the
investors about the effective utilization of cash generated by the company.
7. The Dividend Yield of HUL is 1.32 and P&G is 1.55.

On a whole the performance of HUL is satisfactory. The company has completed a major acquisition during the
year and the expectations are very high for the future years as the return on equity and investment has dropped
drastically and the company has to achieve those ratios.