MARUTI SUZUKI 2019-20 Annual Report Analysis

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MARUTI SUZUKI 2019-20 Annual Report Analysis
Mon, 7 Dec

MARUTI SUZUKI has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

MARUTI SUZUKI Income Statement Analysis

  • Operating income during the year fell 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 33.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY20 as against 13.0% in FY19.
  • Depreciation charges increased by 16.8% and finance costs increased by 76.8% YoY, respectively.
  • Other income grew by 30.2% YoY.
  • Net profit for the year declined by 25.8% YoY.
  • Net profit margins during the year declined from 8.6% in FY19 to 7.2% in FY20.

MARUTI SUZUKI Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 860,685 756,600 -12.1%
Other income Rs m 25,616 33,344 30.2%
Total Revenues Rs m 886,301 789,944 -10.9%
Gross profit Rs m 111,589 74,310 -33.4%
Depreciation Rs m 30,208 35,284 16.8%
Interest Rs m 759 1,342 76.8%
Profit before tax Rs m 106,238 71,028 -33.1%
Tax Rs m 29,732 14,252 -52.1%
Profit after tax Rs m 76,506 56,776 -25.8%
Gross profit margin % 13.0 9.8
Effective tax rate % 28.0 20.1
Net profit margin % 8.6 7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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MARUTI SUZUKI Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 113 billion as compared to Rs 142 billion in FY19, thereby witnessing an decrease of -20.2%.
  • Long-term debt down at Rs 54 million as compared to Rs 80 million during FY19, a fall of 32.5%.
  • Current assets fell 32% and stood at Rs 84 billion, while fixed assets rose 1% and stood at Rs 172 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 636 billion as against Rs 640 billion during FY19, thereby witnessing a fall of 1%.

MARUTI SUZUKI Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 470,921 494,130 4.9
 
Current Liabilities Rs m 141,605 113,054 -20.2
Long-term Debt Rs m 80 54 -32.5
Total Liabilities Rs m 639,687 636,277 -0.5
 
Current assets Rs m 123,727 84,406 -31.8
Fixed Assets Rs m 170,442 171,596 0.7
Total Assets Rs m 639,687 636,277 -0.5
* 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 FY20 stood at Rs 35 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -6 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -31 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY19.

MARUTI SUZUKI Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 66,009 34,958 -47.0%
Cash Flow from Investing Activities Rs m -35,399 -5,566 -
Cash Flow from Financing Activities Rs m -29,479 -31,043 -
Net Cash Flow Rs m 1,131 -1,651 -
* 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 188.0, an decline from the EPS of Rs 253.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 7,743.0, stands at 58.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 2,849.2 2,504.6
TTM Earnings per share Rs 253.3 188.0
Diluted earnings per share Rs 253.3 188.0
Price to Cash Flow x 21.9 25.4
TTM P/E ratio x 58.8 58.8
Price / Book Value ratio x 5.2 3.6
Market Cap Rs m 2,339,005 2,339,005
Dividends per share (Unadj.) Rs 80.0 60.0
* 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 deteriorated and stood at 0.7x during FY20, from 0.9x during FY19. 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 deteriorated and stood at 53.9x during FY20, from 141.0x during FY19. 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 11.5% during FY20, from 16.2% during FY20. 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 14.6% during FY20, from 22.7% during FY19. 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 9.1% during FY20, from 12.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.9 0.7
Debtors’ Days Days 10 10
Interest coverage x 141.0 53.9
Debt to equity ratio x 0.0 0.0
Return on assets % 12.1 9.1
Return on equity % 16.2 11.5
Return on capital employed % 22.7 14.6
* 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 up from Rs 6,881.4 to Rs 7,743.0, registering a gain of Rs 861.7 or around 12.5%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 21,046.5 (up 0.1%). Over the last one year it has moved up from 17,493.1 to 21,046.5, a gain of 3,553 points (up 20.3%).

Overall, the S&P BSE SENSEX is up 11.7% 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 (3QFY21); Net Profit Up 24.1% (Quarterly Result Update)

Jan 28, 2021 | Updated on Jan 28, 2021

For the quarter ended December 2020, MARUTI SUZUKI has posted a net profit of Rs 19 bn (up 24.1% YoY). Sales on the other hand came in at Rs 222 bn (up 7.4% YoY). Read on for a complete analysis of MARUTI SUZUKI's quarterly results.

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 2018-19 Annual Report Analysis (Annual Result Update)

Aug 6, 2019 | Updated on Aug 6, 2019

Here's an analysis of the annual report of MARUTI SUZUKI for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of MARUTI SUZUKI. Also includes updates on the valuation of MARUTI SUZUKI.

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