Comparison of Financial Performance of

Hindustan Uniliver and Procter & Gamble

Nikita Jain 25
Neonika Fernandes 16
Mayur satre 61
Iqra Shaikh 71
Varsha Singh 82
Vansh Mange 30
Yash Bhadra 06
Aditya Bhagat 07
Sathish Salai 58
Swathi Sivadasan 87
 NEONIKA FERNANDIS (16)

HINDUSTAN UNILEVER
HINDUSTAN UNILEVER LIMITED  (HUL) IS AN INDIAN CONSUMER GOODS COMPANY
HEADQUARTERED IN MUMBAI. IT IS A SUBSIDIARY OF THE BRITISH
COMPANY UNILEVER.

ITS PRODUCTS INCLUDE FOODS, BEVERAGES, CLEANING AGENTS, PERSONAL CARE

PRODUCTS, WATER PURIFIERS AND OTHER FAST-MOVING CONSUMER GOODS (FMCGS).

HUL WAS ESTABLISHED IN 1931 AS HINDUSTAN VANASPATI MANUFACTURING CO.

FOLLOWING A MERGER OF CONSTITUENT GROUPS IN 1956, IT WAS RENAMED
HINDUSTAN LEVER LIMITED. THE COMPANY WAS RENAMED AGAIN 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.

THE COMPANY HAS ABOUT 21,000 EMPLOYEES AND HAS SALES OF INR 50,000+ CRORES
(FINANCIAL YEAR 2021-22).

HUL IS A SUBSIDIARY OF UNILEVER, ONE OF THE WORLD’S LEADING SUPPLIERS OF

FOOD, HOME CARE, PERSONAL CARE AND REFRESHMENT PRODUCTS WITH SALES IN
OVER 190 COUNTRIES.
 Procter & Gamble
The Proctor and Gamble Company (P&G) is an American based multinational consumer goods
manufacturing corporation.

P&G was founded in 1837 by William Procter and James Gamble.

The leading maker of household products in the United States,

P&G has operations in nearly 80 countries around the world.

It operates through the following segments: Beauty, Grooming, Health Care, Fabric Care,
Home Care, Baby Care & Family Care.

-IQRA SHAIKH 71
Balance Sheet
THE COMPANY'S CURRENT
LIABILITIES DURING FY22 STOOD AT
RS 113 BILLION AS COMPARED TO
RS 111 BILLION IN FY21, THEREBY
WITNESSING AN INCREASE OF 1.6%.
CURRENT ASSETS ROSE 9% AND
STOOD AT RS 155 BILLION, WHILE
FIXED ASSETS ROSE 1% AND STOOD
AT RS 550 BILLION IN FY22.
OVERALL, THE TOTAL ASSETS AND
LIABILITIES FOR FY22 STOOD AT RS
705 BILLION AS AGAINST RS 687
BILLION DURING FY21, THEREBY
WITNESSING A GROWTH OF 3%.
Hindustan Unilever Financial Statement
INCOME STATEMENT
OPERATING INCOME DURING THE YEAR ROSE 11.5% ON A
YEAR-ON-YEAR (YOY) BASIS.
THE COMPANY'S OPERATING PROFIT INCREASED BY 12.5%
YOY DURING THE FISCAL. OPERATING PROFIT MARGINS
WITNESSED A FALL AND DOWN AT 24.4% IN FY22 AS
AGAINST 24.2% IN FY21.
DEPRECIATION CHARGES INCREASED BY 1.6% AND
FINANCE COSTS DECREASED BY 9.4% YOY, RESPECTIVELY. 
OTHER INCOME DECLINED BY 37.1% YOY.
NET PROFIT FOR THE YEAR GREW BY 11.1% YOY.
NET PROFIT MARGINS DURING THE YEAR DECLINED FROM
17.0% IN FY21 TO 16.9% IN FY22.
 ❏ Quick Ratio
The Quick Ratio is the more rigorous test of liquidity
position of a company than the Current Raito.

Company Quick Assets (Rs.) Current Liabilities Ratio

(Rs.)

HUL 9,147 8,887 1.03

P&G 11,310.62 19314.12 0.59

SALAI SATHISH _ 58
 ❏ Liquidity ratios
The Liquidity ratios are used to determine the short- term solvency
position of a company.
Liquidity ratios include current ratio, Quick ratio

1. Current Ratio
Current ratio is a relationship of Current Assets and Current Liabilities.
Company Current Assets (Rs.) Current Liabilities (Rs.) Ratio

HUL 11,660 8,887 1.31

P&G 15,950.88 19,314.11 0.83

SALAI SATHISH _ 58
 SOLVENCY RATIOS
SWATHI SIVADASAN-87
Debt-Equity Ratio
Company Debt (₹) Equity (₹) Ratios
This ratio expresses the relationship between Debt
(long-term borrowed funds) and the owner’s fund or HUL 1674.00 7,301.00 0.23
equity (Internal equities).
Debt-Equity Ratio = Debt / Equity
P&G 25437.96 36,171.97 0.70

Total Asset to Debt Ratio

Company Total Long-term Ratios
This ratio establishes a relationship between total Assets (₹) debt (₹)
assets and total long-term debts. It measures the
safety margin available to the providers of long- HUL 17,862.00 1,674.00 10.67
term debts
Total Asset to Debt Ratio = Total Assets / P&G 80,924.04 25,437.96 3.18
Long-term Debt
 PROPRIETARY RATIO

Proprietary ratio shows the extent to which the shareholders

own the business. This ratio is also called the Equity Ratio. It
highlights the general financial position of the firm.
Proprietary ratio = Shareholder’s Fund / Total Assets

Company Shareholders Fund Total Assets (₹) Ratio

(₹)
HUL 7,301.00 17,862.00 0.41

P&G 9,378.32 45,713.09 20.52

SWATHI SIVADASAN-87
 • Fixed Asset Turnover Ratio

Company Net Sales (Rs. In Fixed Assets (Rs. In Ratio (in times)
crores) crores)
HUL 34,619.00 6,202.00 5.58
P&G 45,713.09 64,973.16 0.70

• Net Profit Ratio

Company Net Sales (Rs. In Net Profit After Ratio (in %)

crores) Tax(Rs. In crores)
HUL 34,619.00 5216.00 15.07
P&G 45,713.09 6487.74 14.19

Mayur Satre 61
 VARSHA(82)
Financial Statement of Procter & Gamble
1
 NIKITA (25)
Financial Statement of Procter & Gamble
2
Conclusion of which company is doing better

It has comparatively lower operating margin and weaker It has a higher operating margin and stronger revenue
revenue growth. growth.

Facing problems such as fierce competition from startups Similar problem of fierce competition.
& private labels.

HUL has a higher dividend yield. It has lower dividend yield.

ROCE has deteriorated over the past years. Higher returns on Capital employed.

-Aditya Bhagat (07)

T H A N K Y O U