MARUTI SUZUKI 2022-23 Annual Report Analysis

Thu, 10 Aug

MARUTI SUZUKI has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

MARUTI SUZUKI Income Statement Analysis

• Operating income during the year rose 33.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 90.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.5% in FY23 as against 6.6% in FY22.
• Depreciation charges increased by 1.3% and finance costs increased by 47.7% YoY, respectively.
• Other income grew by 22.7% YoY.
• Net profit for the year grew by 111.7% YoY.
• Net profit margins during the year grew from 4.4% in FY22 to 7.0% in FY23.

MARUTI SUZUKI Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	883,298	1,175,713	33.1%
Other income	Rs m	17,447	21,407	22.7%
Total Revenues	Rs m	900,745	1,197,120	32.9%
Gross profit	Rs m	58,681	111,951	90.8%
Depreciation	Rs m	27,890	28,257	1.3%
Interest	Rs m	1,266	1,870	47.7%
Profit before tax	Rs m	46,972	103,231	119.8%
Tax	Rs m	8,177	21,121	158.3%
Profit after tax	Rs m	38,795	82,110	111.7%
Gross profit margin	%	6.6	9.5
Effective tax rate	%	17.4	20.5
Net profit margin	%	4.4	7.0

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MARUTI SUZUKI Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 201 billion as compared to Rs 170 billion in FY22, thereby witnessing an increase of 18.1%.
• Current assets fell 31% and stood at Rs 116 billion, while fixed assets rose 26% and stood at Rs 727 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 843 billion as against Rs 745 billion during FY22, thereby witnessing a growth of 13%.

MARUTI SUZUKI Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	553,335	617,913	11.7
Current Liabilities	Rs m	170,235	201,073	18.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	745,144	843,175	13.2
Current assets	Rs m	167,934	116,156	-30.8
Fixed Assets	Rs m	577,210	727,019	26.0
Total Assets	Rs m	745,144	843,175	13.2

MARUTI SUZUKI Cash Flow Statement Analysis

• MARUTI SUZUKI's cash flow from operating activities (CFO) during FY23 stood at Rs 93 billion, an improvement of 402.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -80 billion, an improvement of 3,259.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -12 billion, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 22 million from the Rs -57 million net cash flows seen during FY22.

MARUTI SUZUKI Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	18,405	92,514	402.7%
Cash Flow from Investing Activities	Rs m	-2,392	-80,361	-
Cash Flow from Financing Activities	Rs m	-16,070	-12,131	-
Net Cash Flow	Rs m	-57	22	-

Current Valuations for MARUTI SUZUKI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 271.8, an improvement from the EPS of Rs 128.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,463.4, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 23.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	2,924.1	3,892.1
TTM Earnings per share	Rs	128.4	271.8
Diluted earnings per share	Rs	128.4	271.8
Price to Cash Flow	x	34.2	23.0
TTM P/E ratio	x	61.4	30.1
Price / Book Value ratio	x	4.2	4.1
Market Cap	Rs m	2,329,340	2,542,200
Dividends per share (Unadj.)	Rs	60.0	90.0

Ratio Analysis for MARUTI SUZUKI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 1.0x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 56.2x during FY23, from 38.1x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 13.3% during FY23, from 7.0% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 17.0% during FY23, from 8.7% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.0% during FY23, from 5.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	0.6
Debtors’ Days	Days	8	10
Interest coverage	x	38.1	56.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.4	10.0
Return on equity	%	7.0	13.3
Return on capital employed	%	8.7	17.0

To see how MARUTI SUZUKI has performed over the last 5 years, please visit here.

MARUTI SUZUKI Share Price Performance

Over the last one year, MARUTI SUZUKI share price has moved up from Rs 8,879.5 to Rs 9,463.4, registering a gain of Rs 583.9 or around 6.6%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 35,365.6 (up 0.7%). Over the last one year it has moved up from 29,694.0 to 35,365.6, a gain of 5,672 points (up 19.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for MARUTI SUZUKI and quarterly results for MARUTI SUZUKI)