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2QFY2013 Result Update | FMCG

October 29, 2012

HUL
Performance Highlights
Quarterly results (standalone)
(` cr) Revenue EBITDA OPM (%) Recurring PAT
Source: Company, Angel Research

NEUTRAL
CMP Target Price
Investment Period
2QFY2012 5,522 738 13.4 645 % yoy 11.5 11 (3)bp 25.0 Angel Est. 6,155 819 13.3 718 % Diff 0.0 0 4bp 12.3

`546 -

2QFY2013 6,155 821 13.3 805

Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code FMCG 118,062 (5,861) 0.4 580/348 250,516 1 18,636 5,666 HLL.BO HUVR@IN

Hindustan Unilever (HUL)s top-line for 2QFY2013 grew by 11.5% yoy to `6,155cr, in-line with our estimates. The recurring net profit for the quarter grew by 25.0% yoy to `805cr, aided by an 83.2% yoy growth in other income to `304cr. However, the underlying volume growth of 7% in the domestic FMCG business is a disappointment. We remain Neutral on the stock. Key highlights during the quarter: The domestic consumer business grew by 16%, with the underlying volume growth coming in at a modest 7%. While the soaps and detergents segment grew by 22% yoy, the personal products segment was up by 12% yoy. The foods division rose by 10% yoy. The management indicated that the overall growth in the quarter was impacted by budget rationalization in the canteen stores department (CSD). The OPM stood at 13.3%, which again was inline with estimates. The gross margins rose by 123bp yoy aided largely by price hikes. HUL increased its advertising and promotion expenses during the quarter, which went up by `118cr on a yoy basis to `769cr. The bottom-line rose by 25% yoy to `805cr aided by an 83.2% yoy growth in other income to `304cr (vs `166cr in 2QFY2012). Outlook and valuation: We expect HUL to post a ~15.5% CAGR in its top-line over FY2012-14E, largely aided by steady performance of all its major divisions. In terms of earnings, we expect HUL to post a 19.7% CAGR. At the current market price, the stock is trading at 32.0x FY2014E earnings. We maintain our Neutral view on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 52.5 9.0 21.4 17.0

Abs. (%) Sensex HUVR

3m 10.7 17.5

1yr 4.7 56.3

3yr 16.1 92.9

Key financials (Standalone)


Y/E March (` cr) Net sales % chg Net profit (Adj.) % chg OPM (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 19,401 10.7 2,099 (0.2) 12.2 9.7 51.1 44.4 80.1 80.3 6.0 49.0

FY2012 21,736 12.0 2,573 22.6 13.4 11.9 43.9 33.6 83.4 74.2 5.3 39.3

FY2013E 25,350 16.6 3,185 23.8 13.3 14.7 37.1 29.3 84.5 76.1 4.5 33.7

FY2014E 28,974 14.3 3,685 15.7 13.5 17.0 32.0 20.7 75.8 63.5 3.9 28.8

V Srinivasan
022-39357800 Ext: 6831 v.srinivasan@angelbroking.com

Please refer to important disclosures at the end of this report

HUL | 2QFY2013 Result Update

Exhibit 1: Quarterly performance (Standalone)


Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Advertising Expenses (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation Other Income PBT (excl. Extr Items) Extr Income/(Expense) PBT (incl. Extr Items) (% of Sales) Provision for Taxation (% of PBT) Recurring PAT
Source: Company, Angel Research

2QFY2013 6,155 3,269 53.1 330 5.4 769 12.5 965 15.7 5,334 821 13.3 6.3 58 304 1,061 2 1,063 17.3 256 24.1 805

2QFY2012 5,522 3,001 54.4 287 5.2 651 11.8 844 15.3 4,784 738 13.4 0.5 57 166 847 44 891 16.1 202 23.9 645

% chg 11.5 8.9 15.0 18.1 14.3 11.5 11.2 (3) 1,072.2 1.0 83.2 25.4 19.3 26.7 25.0

1QFY2013 6,250 3,368 53.9 333 5.3 820 13.1 892 14.3 5,412 838 13.4 5.3 58 347 1,122 605 1,727 27.6 396 35.3 727

% chg (1.5) (2.9) (0.7) (6.2) 8.2 (1.4) (2.0) (6) 19.9 0.2 (12.4) (5.4) (38.4) (35.3) 10.8

1HFY2013 12,406 6,637 53.5 663 5.3 1,589 12.8 1,857 15.0 10,746 1,659 13.4 12 115 651 2,184 606 2,790 22.5 652 29.8 1,532

1HFY2012 11,012 6,089 55.3 574 5.2 1,284 11.7 1,672 15.2 9,618 1,394 12.7 1 113 319 1,599 103 1,702 15.5 386 24.1 1,213

% chg 12.7 9.0 15.7 23.7 11.1 11.7 19.0 72 1,973.2 1.8 104.3 36.6 63.9 68.9 26.3

Revenue growth at 11.5%, in line with estimates


HUL posted an impressive top-line growth of 11.5% yoy, driven by a 16.0% growth in the domestic consumer business. Home and personal care (HPC) and foods businesses posted a growth of 18.5% and 10.0% respectively. On a likefor-like basis, the top-line rose by 17%, considering that 2QFY2012 results included sales of the export business, which has since been de-merged and transferred to a subsidiary. The soaps and detergents (S&D) segment continued to post strong results with revenue growth coming in at 21.0% yoy, with both laundry and skin cleansing segments reporting healthy growth rates. However, during the quarter, the growth of personal products moderated to12% yoy impacted by the relaunch of Fair And Lovely sachets at a higher price of `8/pack vs the earlier `7/pack. During the quarter, HUL launched TRESemme in its hair color portfolio. Beverages grew by 10%, led by premium tea and coffee. The packaged foods segment grew by 16%, led by growth in key brands, with Knorr soups growing in double digits.

October 29, 2012

HUL | 2QFY2013 Result Update

Exhibit 2: Double-digit top-line growth continues


7,000 6,000 5,000 (` cr) 4,000 3,000 4,681 5,027 4,894 5,496 5,522 5,853 5,660 6,250 6,155 2,000 1,000 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 10.7 11.6 13.4 14.6 18.0 16.4 20.0 15.7 13.7 11.5 15.0 10.0 5.0 (%)

Exhibit 3: Volume growth moderates


16 14 12 10 (%) 8 6 4 2 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 46.9 13.3 2Q13 8 14 13 14

10

10

9 7

Top-line (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Net profit up by 25.0% yoy


During the quarter, HUL posted a 25.0% yoy increase in its recurring net profit to `805cr (`645cr). The bottom-line growth was led by an 83.2% yoy growth in other income to `304cr. The management also indicated that on a like for like (LFL) basis (considering the demerger of the FMCG business) the bottom-line rose by 38%.

OPM flat at 13.3%


During the quarter, HUL reported a 123bp yoy improvement in gross margin, aided by price hikes. The company also increased its advertising and promotion (A&P) expenses during the quarter, which went by `118cr on a yoy basis to `769cr. A&P expenses as a proportion of sales stood at 12.5%, up 69bp on a yoy basis. Thus, the companys OPM remained flat on a yoy basis.

Exhibit 4: PAT growth remains healthy


910 810 710 610 (` cr) 510 410 310 210 110 10 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 526 (6.7) (1.8) 10.4 25.9 22.6 33.7 35.6 27.8 25.0 30.0 20.0 ( %) 40.0

Exhibit 5: Gross margin grows but OPM remains flat


60.0 50.0 40.0 (%) 30.0 20.0 10.0 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 13.4 12.0 12.4 11.6 12.0 13.4 15.1 12.9 13.4 45.7 49.1 48.9 45.6 44.0 45.7 47.5 44.8 46.1

10.0 573 486 568 645 766 659 727 805 -

(10.0)

PAT (LHS)

yoy growth (RHS)

OPM

Gross margin

Source: Company, Angel Research

Source: Company, Angel Research

October 29, 2012

HUL | 2QFY2013 Result Update

Exhibit 6: Segmental Performance


Y/E March (` cr) Soaps & Detergents Personal Products Beverages Packaged Foods Others Less: Inter Segment Revenue Total Gross Income Soaps & Detergents Personal Products Beverages Packaged Foods Others Total PBIT Less: Interest Exp Less: Other Unallocable Exp PBT PBIT Margin (%) Soaps & Detergents Personal Products Beverages Packaged Foods Others
Source: Company, Angel Research

2QFY2013 3,176 1,745 720 366 288 0 6,295 454 423 103 9 21 1,009 0 0 1,009 14.3 24.2 14.3 2.5 7.1

2QFY2012 2,596 1,556 654 332 264 260 5,663 321 394 88 16 16 836 (1) 56 891 12.4 25.3 13.4 5.0 6.1

% chg 22.3 12.1 10.0 10.2 9.2 11.2 41.2 7.3 17.5 (45) 26.4 21

1QFY2013 3,163 1,847 654 437 264 260 6,625 385 476 95 25 (4) 976 (5) 756

%chg 0.4 (5.6) 10.0 (16.2) 9.2 (5.0) 17.7 (11.2) 8.5 (64) (576.7) 3

1HFY2013 6,339 3,592 1,374 803 552 0 12,660 839 898 198 26 (2) 1,958 (12) 843

1HFY2012 5,154 3,138 1,263 705 930 0 11,190 557 807 163 34 37 1,599 (1) 104 1,702 10.8 25.7 12.9 4.8 4.0

% chg 23.0 14.4 8.7 14.0 (40.6) 13.1 50.5 11.3 21.4 (24.1) 22.5

13.2

1,727 12.2 25.8 14.5 5.7 (1.6)

(41.6)

2,790 13.2 25.0 14.4 3.2 (0.4)

63.9

S&D posts high double-digit growth, all brands perform well


The S&D segment continued to post strong results with revenue growth coming in at 22.0% yoy. Laundry sustained its healthy growth trajectory with all brands growing in double digits. While Surf and Rin registered double digit volume growths, comfort fabric conditioners continued to lead market development. Skin cleansing sustained its broad based growth momentum with Dove and Pears driving category premiumisation.

Exhibit 7: S&D continues to post impressive growth


3,500 3,000 2,500 (` cr) 2,000 1,500 1,000 500 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2.4 2,264 6.3 2,129 5.8 2,193 11.4 12.9 21.9 20.8 28.6 23.7 30.0 25.0 20.0

Exhibit 8: EBIT margin up by 191bp yoy


500 400 (` cr) 300 250 200 100 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 11.7 9.2 321 7.7 7.5 236 12.4 13.4 11.3 356 14.3 454 12.2 385 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 (%)

15.0 10.0 2,205 2,558 2,596 2,648 2,834 3,163 5.0 -

169

166

Top-line (LHS)

yoy growth (RHS)

EBIT (LHS)

EBIT % (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

October 29, 2012

320

(%)

HUL | 2QFY2013 Result Update

Personal products continue to post double-digit volume growth


However, during the quarter, the growth of personal products moderated to12% yoy impacted by the relaunch of Fair And Lovely sachets at higher price of `8/pack vs the earlier `7/pack. The hair care segment witnessed a broad-based double digit growth. This quarter also saw the relaunch of flagship brand clinic plus and also the innovation of hair fall rescue range in Dove. During the quarter, HUL launched TRESemme in its hair color portfolio. TRESemme is a brand which got added to Unilevers portfolio through the acquisition of AlbertoCulver. TRESemme offers the strong proposition of a salon experience at home. In oral care, both the companys brands Close-up and Pepsodent grew in double digits.

Exhibit 9: Personal products growth moderates to 12%


2,000 1,500 (`cr) 1,000 1,365 1,655 1,459 1,633 1,556 1,888 500 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 14.7 20.2 16.2 19.6 14.0 14.1 11.9 1,633 1,847 1,745 13.1 12.1 25.0 20.0 (%)

Exhibit 10: EBIT margin contracts by 112bp yoy


600 500 400 (`cr) 300 200 314 477 365 413 394 488 456 477 100 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 423 23.0 28.8 25.0 25.3 25.3 25.9 27.9 35.0 25.8 24.2 30.0 25.0 15.0 10.0 5.0 (%) 20.0

15.0 10.0 5.0 -

Top-line (LHS)

yoy growth (RHS)

EBIT (LHS)

EBIT % (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Investment arguments
Increasing innovation and brand repositioning to accelerate growth: HUL has been very actively re-launching products from its existing brands and has increased the pace of new launches, targeting the mid/premium market segment. This, in our view, is positive, considering that the company will have a better control on pricing. Moreover, constant innovations have helped HUL stabilize its market share losses. However, we believe ITCs commitment to categories such as soaps, shampoos and skin care, may pose a major threat to HUL in the long run. Healthy domestic growth rates and strong balance sheet provide further impetus: HUL, with its iconic brands, has maintained its growth, which is impressive given the recent price hikes across categories and a strong competitive scenario, indicating a revival in consumer demand and higher growth in the mid/premium market segment. Moreover, HUL is a cash-rich, zero-debt company enjoying a high RoE of ~75%.

October 29, 2012

HUL | 2QFY2013 Result Update

Outlook and valuation


We expect HUL to post a ~15.5% CAGR in its top-line over FY2012-14E, largely aided by steady performance of all its major divisions. In terms of earnings, we expect HUL to post a ~19.7% CAGR. At the current market price, the stock is trading at 32.0x FY2014E earnings. We maintain our Neutral view on the stock.

Exhibit 11: Peer valuation


Company Asian Paints Britannia Colgate Dabur GCPL GSKCHL HUL ITC Marico Nestle TGBL Reco Neutral Buy Neutral Reduce Neutral Neutral Neutral Neutral Neutral Neutral Neutral Mcap (` cr) 37,724 5,851 16,775 21,825 24,303 12,633 118,040 225,404 12,707 45,045 9,186 CMP (`) 3,933 490 1,234 125 714 3,004 546 288 207 4,672 149 TP* (`) 584 Upside (%) 19 P/E (x) FY13E FY14E 32.5 23.7 34.6 28.1 32.7 27.0 37.1 30.9 30.5 40.7 23.7 27.2 19.3 29.1 24.2 27.0 22.8 32.0 26.4 24.5 33.4 19.9 EV/Sales (x) FY13E FY14E 3.2 0.9 5.4 3.6 4.2 3.6 4.5 7.4 2.6 5.1 1.2 2.7 0.7 4.7 3.0 3.6 3.0 3.9 6.4 2.2 4.3 1.1 RoE (%) FY13E FY14E 37.4 43.1 101.0 43.2 31.2 34.4 84.5 35.4 31.4 71.2 8.6 35.3 41.9 93.5 41.4 30.0 32.8 75.8 34.7 29.7 60.3 9.5 CAGR # Sales PAT 17.0 17.4 12.8 15.3 22.1 16.8 15.5 17.2 18.6 16.5 9.7 18.5 27.4 13.6 18.3 28.3 24.9 19.7 17.7 27.6 15.0 16.6

Source: Company, Angel Research, Note: #denotes CAGR for FY2012-14E

Exhibit 12: Angel vs Consensus estimates


Top-line (` cr) Angel estimates Consensus Diff (%)
Source: Company, Angel Research

FY2013E 25,350 25,494 (0.6)

FY2014E 28,974 29,176 (0.7)

EPS (`) Angel estimates Consensus Diff (%)

FY2013E 14.7 14.6 0.9

FY2014E 17.0 16.8 1.4

Exhibit 13: One-year forward P/E chart


800 700 600 Share Price (`) 500 400 300 200 100 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12

Exhibit 14: One-year forward premium to Sensex


250% 200% 150% 100% 50% 0% -50% Mar-10 Mar-11 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Mar-07 Mar-08 Mar-09 Mar-12 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12

20x

25x

30x

35x

Source: Company, Angel Research

Source: Company, Angel Research, Note: Blue line indicates 5-year average

October 29, 2012

HUL | 2QFY2013 Result Update

Company Background
HUL, a 52% subsidiary of Unilever, is one of India's largest consumer goods companies. HUL is present across four main product categories 1) soaps and detergents (50% of revenue); 2) personal products (mainly shampoos, skin care and toothpaste; 30% of revenue); 3) beverages (mainly tea and coffee; 12% of revenue); 4) packaged foods and ice cream (6% of revenue); and 5) others, mainly consisting of water purifiers. The company, with its iconic brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan and Walls, has a vast presence in rural as well as urban Indian markets, with one of the largest distribution networks spanning over 6.3mn retail outlets.

October 29, 2012

HUL | 2QFY2013 Result Update

Profit & Loss Statement (Standalone)


Y/E March (` cr) Net Sales Total operating income % chg Total Expenditure Cost of Materials Advertising Exp Personnel Others EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Prior Period & Extr. Exp./(Inc.) PBT (reported) Tax (% of PBT) PAT (Adjusted) Add: Share of earnings of asso. Recurring PAT Reported PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
#

FY2009# FY2010 FY2011 FY2012 FY2013E FY2014E 20,239 17,524 20,239 17,524 48.0 10,810 2,131 1,152 3,490 2,656 41.4 13.1 195 2,461 41.4 12.2 25 590 19.5 3,025 40.9 4 3,021 524 17.3 2,501 2,501 2,496 29.7 12.3 11.5 11.5 43.3 (13.4) 8,878 2,391 936 2,770 2,548 (4.1) 14.5 184 2,364 (3.9) 13.5 7 350 12.9 2,707 (10.5) (99) 2,806 604 22.3 2,103 2,103 2,202 (11.8) 12.6 9.6 9.6 (16.0) 17,583 14,975 19,401 19,401 10.7 17,036 10,057 2,764 961 3,254 2,365 (7.2) 12.2 221 2,144 (9.3) 11.1 0 586 21.5 2,730 0.9 (207) 2,937 631 23.1 2,099 2,099 2,306 4.7 11.9 9.7 9.7 0.9 21,736 21,736 12.0 18,825 11,738 2,635 1,107 3,345 2,911 23.1 13.4 218 2,692 25.6 12.4 1 659 19.7 3,350 22.7 (119) 3,469 778 23.2 2,573 2,573 2,691 16.7 12.4 11.9 11.9 22.4 25,350 25,350 16.6 21,972 13,586 3,219 1,280 3,886 3,379 16.1 13.3 224 3,155 17.2 12.4 23 1,016 24.5 4,148 23.8 (466) 4,614 963 23.2 3,185 3,185 3,651 35.7 14.4 14.7 14.7 23.8 28,974 28,974 14.3 25,054 15,499 3,651 1,463 4,442 3,919 16.0 13.5 226 3,693 17.1 12.7 23 1,129 23.5 4,799 15.7 4,799 1,114 23.2 3,685 3,685 3,685 0.9 12.7 17.0 17.0 15.7

Note: FY2009 results are for 15 months; Some of the figures from FY2011 onwards are

reclassified; hence not comparable with previous year numbers

October 29, 2012

HUL | 2QFY2013 Result Update

Balance Sheet (Standalone)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Long term provisions Other long term liabilities Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long term loans and advan Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Total Assets
#

FY2009# FY2010 218 1,844 2,062 422 (255) 218 2,365 2,584 (249)

FY2011 FY2012E FY2013E FY2014E 216 2,444 2,660 (210) 664 219 216 3,297 3,513 (214) 667 330 4,295 3,812 1,664 2,147 215 2,438 396 5,547 1,830 521 3,196 6,449 (902) 4,295 216 3,809 4,025 (210) 700 330 4,845 3,992 1,888 2,104 399 2,438 420 6,900 2,503 594 3,803 7,417 (517) 4,845 216 5,484 5,701 (210) 700 330 6,521 4,110 2,114 1,996 411 3,138 450 8,008 2,850 709 4,450 7,483 525 6,521

2,229 2,882 1,275 1,607 472 333 5,601 1,777 758 3,066 5,784 2,229

2,335 3,582 1,420 2,162 274 1,264 5,368 1,892 624 2,852 6,733 2,335

3,333 3,760 1,591 2,169 289 1,261 400 5,834 1,628 452 3,754 6,620 (786) 3,333

(183) (1,365)

Note: FY2009 results are for 15 months; Some of the figures from FY2011 onwards are

reclassified; hence not comparable with previous year numbers

October 29, 2012

HUL | 2QFY2013 Result Update

Cash Flow Statement (Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Interest / Dividend (Net) Direct taxes paid Others Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net) Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
#

FY2009# FY2010 FY2011 FY2012 FY2013E FY2014E 3,025 195 (330) (126) 524 (19) 2,220 (629) 1,167 39 333 1,677 (122) 1,576 201 1,777 2,707 184 1,375 (117) 604 (67) 3,477 (502) (931) 32 (422) 1,656 (117) 115 1,777 1,892 2,730 221 (538) (190) 631 (142) 1,450 (192) 3 (73) 1,642 (190) (264) 1,892 1,628 3,350 218 205 (161) 778 208 3,043 21 (1,178) 38.1 1,884 (161) 201 1,628 1,830 4,148 224 151 (158) 963 617 4,019 (364) 0 (364) 3,140 (158) (2,981) 673 1,830 2,503 4,799 226 (732) (211) 1,114 6 2,975 (129) (700) (829) 2,009 (211) (1,799) 347 2,503 2,850

538 (1,434)

(189) (1,156)

(1,181) (1,929) (1,525) (1,685)

Note: FY2009 results are for 15 months; Some of the figures from FY2011 onwards are

reclassified; hence not comparable with previous year numbers

October 29, 2012

10

HUL | 2QFY2013 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days)
#

FY2009# FY2010 47.7 43.8 57.3 1.4 5.8 44.2 52.7 11.5 11.6 12.5 7.5 9.5 138.9 142.9 7.0 46 10 77 (35) 54.1 51.6 45.7 1.2 6.6 45.5 49.7 9.6 9.7 10.6 6.5 12.0 103.6 90.5 4.9 45 14 110 (68)

FY2011 51.1 50.9 44.4 1.2 6.0 49.0 43.4 9.7 9.7 10.7 6.5 12.3 85.7 80.1 5.2 53 18 105 (50)

FY2012 FY2013E FY2014E 43.9 42.3 33.6 1.4 5.3 39.3 31.6 11.9 11.9 12.9 7.5 16.3 85.5 83.4 5.7 42 11 87 (50) 37.1 34.6 29.3 2.3 4.5 33.7 27.5 14.7 14.7 15.8 12.5 18.6 81.2 84.5 6.4 46 9 81 (48) 32.0 30.2 20.7 1.5 3.9 28.8 19.4 17.0 17.0 18.1 8.0 26.4 74.1 75.8 7.1 46 10 78 (32)

Note: FY2009 results are for 15 months; Some of the figures from FY2011 onwards are

reclassified; hence not comparable with previous year numbers

October 29, 2012

11

HUL | 2QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

HUL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

October 29, 2012

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