MARUTI SUZUKI 2020-21 Annual Report Analysis

Wed, 31 Mar

MARUTI SUZUKI has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

MARUTI SUZUKI Income Statement Analysis

• Operating income during the year fell 7.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY21 as against 9.7% in FY20.
• Depreciation charges decreased by 14.0% and finance costs decreased by 24.1% YoY, respectively.
• Other income declined by 11.9% YoY.
• Net profit for the year declined by 24.1% YoY.
• Net profit margins during the year declined from 7.3% in FY20 to 6.0% in FY21.

MARUTI SUZUKI Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	756,600	703,720	-7.0%
Other income	Rs m	33,344	29,363	-11.9%
Total Revenues	Rs m	789,944	733,083	-7.2%
Gross profit	Rs m	73,126	53,516	-26.8%
Depreciation	Rs m	35,284	30,341	-14.0%
Interest	Rs m	1,342	1,018	-24.1%
Profit before tax	Rs m	69,844	51,520	-26.2%
Tax	Rs m	14,252	9,319	-34.6%
Profit after tax	Rs m	55,592	42,201	-24.1%
Gross profit margin	%	9.7	7.6
Effective tax rate	%	20.4	18.1
Net profit margin	%	7.3	6.0

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MARUTI SUZUKI Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 161 billion as compared to Rs 113 billion in FY20, thereby witnessing an increase of 42.6%.
• Long-term debt down at Rs 28 million as compared to Rs 54 million during FY20, a fall of 48.1%.
• Current assets rose 120% and stood at Rs 185 billion, while fixed assets fell 4% and stood at Rs 527 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 713 billion as against Rs 636 billion during FY20, thereby witnessing a growth of 12%.

MARUTI SUZUKI Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	494,130	525,006	6.2
Current Liabilities	Rs m	113,054	161,205	42.6
Long-term Debt	Rs m	54	28	-48.1
Total Liabilities	Rs m	636,277	712,827	12.0
Current assets	Rs m	84,406	185,443	119.7
Fixed Assets	Rs m	551,871	527,384	-4.4
Total Assets	Rs m	636,277	712,827	12.0

MARUTI SUZUKI Cash Flow Statement Analysis

• MARUTI SUZUKI's cash flow from operating activities (CFO) during FY21 stood at Rs 89 billion, an improvement of 153.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -73 billion, an improvement of 1,210.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -15 billion, an improvement of 50% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 200 million from the Rs -2 billion net cash flows seen during FY20.

MARUTI SUZUKI Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	34,958	88,562	153.3%
Cash Flow from Investing Activities	Rs m	-5,566	-72,913	-
Cash Flow from Financing Activities	Rs m	-31,043	-15,449	-
Net Cash Flow	Rs m	-1,651	200	-

Current Valuations for MARUTI SUZUKI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 139.7, an decline from the EPS of Rs 184.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,859.8, stands at 49.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	2,504.6	2,329.6
TTM Earnings per share	Rs	184.0	139.7
Diluted earnings per share	Rs	184.0	139.7
Price to Cash Flow	x	14.3	25.8
TTM P/E ratio	x	23.3	49.1
Price / Book Value ratio	x	3.6	3.6
Market Cap	Rs m	1,781,366	1,873,199
Dividends per share (Unadj.)	Rs	60.0	45.0

Ratio Analysis for MARUTI SUZUKI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 0.7x during FY20. 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 51.6x during FY21, from 53.0x during FY20. 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 8.0% during FY21, from 11.3% during FY21. 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 10.0% during FY21, from 14.4% during FY20. 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 6.1% during FY21, from 8.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.7	1.2
Debtors’ Days	Days	10	7
Interest coverage	x	53.0	51.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.9	6.1
Return on equity	%	11.3	8.0
Return on capital employed	%	14.4	10.0

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 4,287.8 to Rs 6,859.8, registering a gain of Rs 2,572.0 or around 60.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 22,252.2 (down 0.0%). Over the last one year it has moved up from 10,746.2 to 22,252.2, a gain of 11,506 points (up 107.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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