Revenue and Profit Growth
Over the seven-year period ending March 2025, Hindustan Unilever’s net sales have shown a robust upward trajectory, rising from ₹39,310 crore in March 2019 to ₹63,121 crore in March 2025. This represents a compound annual growth rate (CAGR) of approximately 9.5%, highlighting the company’s ability to expand its top line despite market fluctuations.
Operating profit margins have remained relatively stable, hovering around 24% to 25% for most years, with a slight dip to 23.8% in the latest fiscal year. This consistency indicates effective cost management and pricing power. The operating profit (PBDIT) excluding other income increased from ₹8,880 crore in March 2019 to ₹14,851 crore in March 2025, reflecting strong operational leverage.
Profit after tax (PAT) has also grown steadily, from ₹6,060 crore in March 2019 to ₹10,679 crore in March 2025. The PAT margin has improved from 15.7% to 17.1% over the same period, signalling enhanced profitability and efficient tax management. Earnings per share (EPS) rose from ₹28.03 to ₹45.31, demonstrating value creation for shareholders.
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Cost Structure and Expenditure
The company’s raw material costs have increased in line with sales, rising from ₹13,707 crore in March 2019 to ₹19,458 crore in March 2025. Purchase of finished goods also saw a significant rise, reflecting expanded product offerings and market reach. Selling and distribution expenses have grown moderately, indicating sustained investment in market penetration and brand building.
Employee costs have increased steadily, consistent with the company’s growth and inflationary pressures. Other expenses have also risen, but the company has maintained a disciplined approach to overall expenditure, ensuring that total costs excluding depreciation have grown proportionately with revenue.
Balance Sheet Strength
Hindustan Unilever’s balance sheet reveals a strong financial position with shareholder’s funds increasing from ₹8,229 crore in March 2020 to ₹49,402 crore in March 2025. The company has maintained a negligible debt level, with total debt effectively near zero in recent years, underscoring a conservative capital structure and low financial risk.
Net block of fixed assets has expanded significantly, reflecting ongoing capital expenditure to support growth and innovation. Total assets have grown from ₹19,869 crore in March 2020 to ₹79,863 crore in March 2025, indicating substantial asset base expansion to support business operations.
Cash and bank balances have fluctuated but remain healthy, with a closing balance of ₹6,070 crore in March 2025, providing ample liquidity for operational needs and strategic investments.
Cash Flow and Financial Health
Operating cash flow has shown strong growth, reaching ₹11,886 crore in March 2025 from ₹7,623 crore in March 2020. This reflects the company’s ability to generate cash from core operations efficiently. Investing activities have varied, with significant outflows in recent years due to capital investments, while financing activities have consistently seen outflows, primarily due to dividend payments and share buybacks.
Net cash inflow was ₹5,258 crore in March 2025, a marked improvement from prior years, signalling robust cash management and financial discipline.
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Summary of Historical Performance
In summary, Hindustan Unilever has exhibited a consistent and steady growth pattern across key financial metrics over the past several years. The company’s revenue and profit growth have been supported by stable margins and disciplined cost control. Its strong balance sheet with minimal debt and growing asset base provides a solid foundation for future expansion.
The company’s ability to generate healthy operating cash flows and maintain liquidity further enhances its financial stability. Earnings per share growth and improving profitability margins reflect effective management and shareholder value creation. Overall, Hindustan Unilever’s historical performance underscores its position as a leading FMCG player with resilient fundamentals and sustainable growth prospects.
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