MARUTI SUZUKI 2018-19 Annual Report Analysis

Sun, 31 Mar

MARUTI SUZUKI has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

MARUTI SUZUKI Income Statement Analysis

• Operating income during the year rose 10.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY19 as against 15.4% in FY18.
• Depreciation charges increased by 9.5% and finance costs decreased by 78.1% YoY, respectively.
• Other income grew by 25.1% YoY.
• Net profit for the year declined by 2.9% YoY.
• Net profit margins during the year declined from 9.9% in FY18 to 8.7% in FY19.

MARUTI SUZUKI Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	775,777	860,685	10.9%
Other income	Rs m	21,449	26,837	25.1%
Total Revenues	Rs m	797,226	887,522	11.3%
Gross profit	Rs m	119,643	108,811	-9.1%
Depreciation	Rs m	27,598	30,208	9.5%
Interest	Rs m	3,458	759	-78.1%
Profit before tax	Rs m	110,036	104,681	-4.9%
Tax	Rs m	32,862	29,732	-9.5%
Profit after tax	Rs m	77,174	74,949	-2.9%
Gross profit margin	%	15.4	12.6
Effective tax rate	%	29.9	28.4
Net profit margin	%	9.9	8.7

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MARUTI SUZUKI Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 142 billion as compared to Rs 154 billion in FY18, thereby witnessing an decrease of -8.3%.
• Long-term debt down at Rs 80 million as compared to Rs 100 million during FY18, a fall of 20.0%.
• Current assets rose 56% and stood at Rs 124 billion, while fixed assets fell 1% and stood at Rs 516 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 640 billion as against Rs 602 billion during FY18, thereby witnessing a growth of 6%.

MARUTI SUZUKI Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	425,594	470,921	10.7
Current Liabilities	Rs m	154,485	141,605	-8.3
Long-term Debt	Rs m	100	80	-20.0
Total Liabilities	Rs m	602,484	639,687	6.2
Current assets	Rs m	79,300	123,727	56.0
Fixed Assets	Rs m	523,184	515,960	-1.4
Total Assets	Rs m	602,484	639,687	6.2

MARUTI SUZUKI Cash Flow Statement Analysis

• MARUTI SUZUKI's cash flow from operating activities (CFO) during FY19 stood at Rs 66 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -35 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -29 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs 501 million net cash flows seen during FY18.

MARUTI SUZUKI Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	117,879	66,009	-44.0%
Cash Flow from Investing Activities	Rs m	-83,017	-35,399	-
Cash Flow from Financing Activities	Rs m	-34,361	-29,479	-
Net Cash Flow	Rs m	501	1,131	125.7%

Current Valuations for MARUTI SUZUKI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 248.1, an decline from the EPS of Rs 255.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,671.7, stands at 26.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 23.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	2,568.1	2,849.2
TTM Earnings per share	Rs	255.5	248.1
Diluted earnings per share	Rs	255.5	248.1
Price to Cash Flow	x	25.6	23.3
TTM P/E ratio	x	34.7	26.9
Price / Book Value ratio	x	5.7	5.2
Market Cap	Rs m	2,420,266	2,453,948
Dividends per share (Unadj.)	Rs	80.0	80.0

Ratio Analysis for MARUTI SUZUKI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY19, from 0.5x during FY18. 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 138.9x during FY19, from 32.8x during FY18. 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 declined and down at 15.9% during FY19, from 18.1% during FY19. 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 declined and down at 22.4% during FY19, from 26.7% during FY18. 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 declined and down at 11.8% during FY19, from 13.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	0.5	0.9
Debtors’ Days	Days	7	10
Interest coverage	x	32.8	138.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.4	11.8
Return on equity	%	18.1	15.9
Return on capital employed	%	26.7	22.4

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 down from Rs 8,863.2 to Rs 6,671.7, registering a loss of Rs 2,191.5 or around 24.7%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,824.9 (up 1.2%). Over the last one year it has moved down from 24,057.3 to 18,824.9, a loss of 5,232 points (down 21.7%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of MARUTI SUZUKI