Result-Analysis-Elite-Wealth
Result Analysis: Maruti Suzuki India limited Result Update Q4FY22 and FY22
Particulars (In Rs. Cr.) Q4FY22 Q3FY22 Q4FY21 QoQ %      YoY%
Revenue from Operations 26740 23246 24,024 15.0% 11.3%
Other Income 474.4 328 89.8 44.6% 428.3%
Total Income 27214 23574 24114 15.4% 12.9%
Raw Material Consumed 11,937 10,043 12,066 18.9% -1.1%
Stock Adjustment -141.5 382.3 -365.8
Purchase of finished Goods 7871 7078.3 6050.5 11.2% 30.1%
Employee Benefit Expenses 1025.8 969.9 900.3 5.8% 13.9%
Other Expenses 3620.7 3214 3381.4 12.7% 7.1%
EBITDA 2,427 1,559 1,991 55.7% 21.9%
Finance Cost 56 25 32 122.2% 72.8%
Depreciation 647 640 741 1.1% -12.7%
Tax 359 211 141 70.6% 154.0%
Profit After Tax 1,839 1,011 1,166 81.8% 57.7%
EBITDA Margin 9.08% 6.71% 8.29% 237 bps 79 bps
PAT Margin 6.76% 4.29% 4.84% 247 bps 192 bps
EPS 60.87 33.48 38.60 81.8% 57.7%

Result Highlight: 

  • Maruti Suzuki Revenue rose 15% QoQ and 11.3% YoY to Rs 26740 crore – below the estimates of Rs.26862 Crore. For FY22 Revenue is up 25.5% to Rs. 88,296 Crore from Rs. 70333 Crore in FY21.

  • Sales volume during the quarter is down 0.7% YoY to 4,88,830 Units in Q4FY22 however up by 13.5% QoQ.

  • The sales in the export market were at 68,454 units which is the highest ever in any Quarter.

  • Net profit rose 57.7% YoY to Rs 1839 crore for the March quarter compared with Rs.1166 crore in the same quarter last year. For FY22 Net Profit fell 11% to Rs. 3766 Crore from Rs. 4230 Crore in FY21 due to higher expenses.

  • EBITDA Margin improved to 9.08% in Q4FY22 from 8.29% in Q4FY21 and 6.71% in Q3FY22.

  • Margin improvement due to Cost reduction efforts, Lower sales promotion expenses and increase in selling prices with higher non-operating income.

  • The company approved final dividend of Rs 60 per share. This is a special one-time gesture to thank shareholders for their patronage and support as the Company commemorates its 40th year since inception.

Management commentary: Chairman – R. C. Bhargava 

  • The prices of commodities such as steel, aluminum and precious metals witnessed an unprecedented increase during this year. The Company was forced to increase prices of vehicles to partially offset this impact. The Company continued to work on cost reduction efforts to minimize the impact on customers.

  • Market at the lower end has been shrinking significantly over the last three years due to regulatory changes and increase in prices of commodities.

  • Small car used to bread and butter for us, the butter has gone away. Affordability of small cars has been hit severely in the last three years.
  • A lot of customers have dropped out of the market

  • Sales of hatchbacks have declined by over 25% in the last three years.

  • Small car market is unlikely to improve going ahead.

  • The supply situation of electronic components continues to be unpredictable, and hence it might have some impact on the production volume in FY23. Lost 2.70 lakh cars due to semiconductor in FY22.

  • Approves expansion of Manesar Plant by 1 lakh Units. Maruti Suzuki India’s two existing plants at Gurugram and Manesar in Haryana have a combined manufacturing capacity of 15, 80,000 units with Manesar plant have production capacity of 800,000 units every year,

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