MARUTI SUZUKI Announces Quarterly Results (3QFY19); Net Profit Down 17.2%

Mon, 28 Jan

MARUTI SUZUKI has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

MARUTI SUZUKI Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	192,832	224,332	196,683	-12.3%	2.0%
Other income	Rs m	2,449	5,266	9,173	74.2%	274.6%
Turnover	Rs m	195,281	229,598	205,856	-10.3%	5.4%
Expenses	Rs m	162,454	190,019	177,372	-6.7%	9.2%
Gross profit	Rs m	30,378	34,313	19,311	-43.7%	-36.4%
Depreciation	Rs m	6,890	7,212	7,677	6.4%	11.4%
Interest	Rs m	263	257	206	-19.8%	-21.7%
Profit before tax	Rs m	25,674	32,110	20,601	-35.8%	-19.8%
Tax	Rs m	7,684	9,706	5,708	-41.2%	-25.7%
Profit after tax	Rs m	17,990	22,404	14,893	-33.5%	-17.2%
Gross profit margin	%	15.8	15.3	9.8
Effective tax rate	%	29.9	30.2	27.7
Net profit margin	%	9.2	9.8	7.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 2.0% on a year-on-year (YoY) basis. The expenses were up by 9.2% YoY during the same period.
• The company's operating profit declined by 36.4% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 9.8% in 3QFY19 as against 15.8% in 3QFY18.
• Depreciation charges increased by 11.4% and finance costs declined by 21.7% YoY, respectively.
• Other income increased by 274.6% YoY during the quarter.
• Net profit for the quarter declined by 17.2% YoY. Net profit margins during the quarter declined from 9.2% in 3QFY18 to 7.2% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 12.3% on a quarter-on-quarter (QoQ) basis. The expenses were down by 6.7% QoQ during the same period.
• The company's operating profit declined by 43.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 9.8% in 3QFY19 as against 15.3% in 2QFY18.
• Net profit for the quarter declined by 33.5% QoQ, while net profit margins declined from 9.8% in 2QFY18 to 7.2% in 3QFY19.

To see how MARUTI SUZUKI has performed over the last eight quarters, please visit here.

MARUTI SUZUKI Share Price Performance

Over the last one year, MARUTI SUZUKI share price has moved up from Rs 9,277.2 to Rs 6,405.1, registering a Loss of Rs 2,872.2 or around 31.0%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,313.3 (down 1.7%). Over the last one year it has moved down from 25,670.0 to 18,313.3, a gain of 7,357 points (down 28.7%).

Overall, the S&P BSE SENSEX is down 0.6% over the year.

Current Valuations

At the current price of Rs 6,405.1, the price to earnings (P/E) ratio of MARUTI SUZUKI stands at 25.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.5 times.