Hindustan Unilever

Ltd:
Cash Flow Analysis

BY:
Apoorv Kalra
Bhaumik Ghetia
Ankit Arora
Gursimran Singh
Bharat Mendiratta Garima Sindhwani

About The Company

Hindustan Unilever Limited(HUL) is an

Indianconsumer goodscompany based inMumbai,

Maharashtra.
HUL's products include foods, beverages,cleaning
agentsand personal care products.
Owned by Anglo-Dutch companyUnileverwhich owns a
52% controlling share in HUL.
Net income of HUL recorded for the year 2013-14 was
29,035.22 and for the year 2012-13 was 27,056.64
Net profit of the company for year 2013-14 was
3,867.49 crores up from last years figure of
3,796.67.

CASH FLOW STATEMENT OF

HUL FOR THE YEAR 2013-14

Microsoft Office
Excel Worksheet
ALL FIGURES IN CRORES UNLESS
STATED

Is the cash balance increasing with

an increase in profit ?
Cash to Sales Ratio : 28324.11/28640.16 = 98.89%

Net Cash from operating activities

3724.15 cr
Net Cash from investing activities
(513.16) cr
Net Cash from financing activities
Major
(2916.79)
cr Sources of Cash Inflow are -:
Cash
from &
operations
Net Increase
In Cash
Cash Equivalents
294.20 cr Sale of Current Investments
Maturity of Bank Deposits

=
=
=
=

ALL FIGURES IN CRORES UNLESS

STATED

Financing of Investments

Purchase of Fixed assets

Investment in equity shares of a
subsidiary
Purchase of current investments
Loans given to subsidiaries
Investment in bank deposits
Sale proceeds of current investments
Loans repaid by subsidiaries
Maturity of bank deposits
Interest received
Dividend received from subsidiaries

530.81

100.64
9,537.48
261.77
2,549.72
12980.42
9,091.73
135.74
2,641.19
210.38
130.63
12,209.67

Rest of the Investments i.e. 700cr (approx) were financed cash from
operating activities , financing activities and drawing down cash and
cash equivalents.
ALL FIGURES IN CRORES UNLESS
STATED

Companys ability to generate future

cash flows.
Unlikely to default on Interest payments
(Net operating cash flow = 3724cr , Interest paid = 40cr)
High levels of Reserves maintained by the company
Reduction in the amounts of dividends paid to the
shareholders
The company has purchased current investments in the
previous fiscal year which will mature in the present
fiscal year.
ALL FIGURES IN CRORES UNLESS
STATED

Is the negative cash flow from investing

activity straining the companys overall cash
flow?
(Investing) < Operating + (Financing)
Withdrawal from the cash balance not
required
As a result, Cash (2013-14) > Cash
(2012-13)

ALL FIGURES IN CRORES UNLESS

STATED

Does the company enjoy financial

flexibility?
Huge cash
balance

Can sell
current
investment
s

Yes
!
Raise funds
through loans
D/E Ratio: 0.34

High
reserves
and surplus

ALL FIGURES IN CRORES UNLESS

STATED

Prospects of shareholders and

creditors?
Trade payable
-> Cash flow
from operation
+ Provision

EPS: 17.56.
Dividend paid:
11.43.

Same
percentage can
be maintained
looking at the
EPS for FY
2013-14

Provided, no
investment
plans
elsewhere.
ALL FIGURES IN CRORES UNLESS
STATED

THANK YOU