MARUTI SUZUKI 2018-19 Annual Report Analysis

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MARUTI SUZUKI 2018-19 Annual Report Analysis
Tue, 6 Aug

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 7.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 8.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY19 as against 15.3% in FY18.
  • Depreciation charges increased by 9.5% and finance costs decreased by 78.1% YoY, respectively.
  • Other income grew by 25.2% YoY.
  • Net profit for the year declined by 2.9% YoY.
  • Net profit margins during the year declined from 9.6% in FY18 to 8.6% in FY19.

MARUTI SUZUKI Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 798,094 860,685 7.8%
Other income Rs m 20,458 25,616 25.2%
Total Revenues Rs m 818,552 886,301 8.3%
Gross profit Rs m 122,267 111,589 -8.7%
Depreciation Rs m 27,598 30,208 9.5%
Interest Rs m 3,458 759 -78.1%
Profit before tax Rs m 111,669 106,238 -4.9%
Tax Rs m 32,862 29,732 -9.5%
Profit after tax Rs m 78,807 76,506 -2.9%
Gross profit margin % 15.3 13.0
Effective tax rate % 29.4 28.0
Net profit margin % 9.6 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 stood at Rs 1 billion as compared to Rs 1 billion during FY18, a growth of 35.0%.
  • Current assets rose 56% and stood at Rs 124 billion, while fixed assets rose 10% and stood at Rs 170 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 1,108 1,496 35.0
Total Liabilities Rs m 602,484 639,687 6.2
 
Current assets Rs m 79,300 123,727 56.0
Fixed Assets Rs m 155,209 170,442 9.8
Total Assets Rs m 602,484 639,687 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for MARUTI SUZUKI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 253.3, an decline from the EPS of Rs 260.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 5,760.0, stands at 25.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.3 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 2,642.0 2,849.2
TTM Earnings per share Rs 260.9 253.3
Diluted earnings per share Rs 260.9 253.3
Price to Cash Flow x 16.4 16.3
TTM P/E ratio x 25.0 25.0
Price / Book Value ratio x 5.7 5.2
Market Cap Rs m 1,739,981 1,739,981
Dividends per share (Unadj.) Rs 80.0 80.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 141.0x during FY19, from 33.3x 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 16.2% during FY19, from 18.5% 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 22.6% during FY19, from 27.0% 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 12.1% during FY19, from 13.7% 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 33.3 141.0
Debt to equity ratio x 0.0 0.0
Return on assets % 13.7 12.1
Return on equity % 18.5 16.2
Return on capital employed % 27.0 22.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 9,287.4 to Rs 5,760.0, registering a loss of Rs 3,527.4 or around 38.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 15,583.9 (up 0.9%). Over the last one year it has moved down from 24,220.8 to 15,583.9, a loss of 8,637 points (down 35.7%).

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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Related Views on News

MARUTI SUZUKI Announces Quarterly Results (1QFY21); Net Profit Down 117.4% (Quarterly Result Update)

Jul 30, 2020 | Updated on Jul 30, 2020

For the quarter ended June 2020, MARUTI SUZUKI has posted a net profit of Rs 2 bn (down 117.4% YoY). Sales on the other hand came in at Rs 41 bn (down 79.2% YoY). Read on for a complete analysis of MARUTI SUZUKI's quarterly results.

MARUTI SUZUKI Announces Quarterly Results (4QFY20); Net Profit Down 28.1% (Quarterly Result Update)

May 14, 2020 | Updated on May 14, 2020

For the quarter ended March 2020, MARUTI SUZUKI has posted a net profit of Rs 13 bn (down 28.1% YoY). Sales on the other hand came in at Rs 182 bn (down 15.2% YoY). Read on for a complete analysis of MARUTI SUZUKI's quarterly results.

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