Maruti Suzuki India Limited (Maruti), the largest passenger vehicle manufacturer in India, on April 29 reported a growth of 51 percent year-on-year in its consolidated profit after tax (PAT) at Rs 1,876 crore as compared to Rs 1,241 crore registered in the corresponding quarter of the previous fiscal. On a sequential basis, the profit inched up 80 percent from Rs 1,042 crore logged during the October-December quarter.
The consolidated revenue for the company rose 11 percent on-year to Rs 26,749 crore as compared to Rs 24,035 crore registered in the year-ago quarter. On a sequential basis, the revenue was higher by 15 percent from Rs 23,253 crore recorded in the previous quarter.
For the full-year period from April to March 2022, the consolidated PAT has witnessed a decline of 12 percent at Rs 3,879 crore compared to a profit of Rs 4,389 crore achieved during FY21.
Consolidated revenue for FY22 jumped 26 percent to Rs 88,330 crore from the revenue of Rs 70,372 crore reported in the last year.
“The prices of commodities such as steel, aluminium, and precious metals witnessed an unprecedented increase during this year which forced the company to increase prices of vehicles to partially offset this impact”, the company said in its earnings release.
Lower advertising and market expenses and better efficiencies enabled the company to control costs to some extent.
Volumes
The ongoing semi-conductor shortage impacted the production for the company during the quarter resulting in a lower production of 270,000 vehicles. The shortage impacted the domestic models the most. The company had 268,000 pending bookings at the end of the current financial year.
The sales volume for the quarter declined 0.7 percent on-year as the company managed to sell 488,830 units during the reported quarter. Domestic sales volume declined 8 percent on-year to 420,376 units as against 68,454 units in exports which was also the highest ever export sales achieved in any quarter by the company.
Production during the year was impacted by the shortage of electronic components for an estimated 270,000 vehicles, mostly domestic models, because of which there were pending customer bookings of about 268,000 vehicles at the end of the year. In addition, the first quarter witnessed a disruption owing to the second COVID wave.
For the full year, the company sold a total of 1,652,653 vehicles during the year, up 13.4 percent over the previous financial year. Its domestic sales stood at 1,414,277 units, an increase of 3.9 percent over FY21.
Exports sales during the year were its highest ever recorded at 238,376 units compared to 96,139 units for FY21.
Costs
The raw material cost as a percentage of revenue from operations declined to 45 percent as compared to 50 percent in the year-ago quarter. Compared to the previous quarter, this was an increase of 200 bps.
Employee cost as percentage of revenue from operations increased marginally by 10 bps on-year to 3.9 percent. However, on a sequential basis, it witnessed a decline of 30 bps.
The company has implemented initiatives to improve efficiencies and bring down the costs and the result was evident in the decline in other expenses which reduced by 40 bps on year to 13.7 percent. On a sequential basis, the saving was 20 bps.
Depreciation during the quarter was also significantly lower compared to the year ago-period as well as the previous quarter.
Dividend
Maruti has recommended a dividend of Rs 60 per share (face value of Rs 5 per share) compared to Rs 45 per share in FY21. The total outgo for the dividend payment will be Rs 1,813 crore.
The date of payment of the dividend is September 8, 2022, subject to the approval of the shareholders in the ensuing annual general meeting.
Maruti Suzuki stock closed Rs 170.35 lower at Rs 7,717.8 on April 29 at the National Stock Exchange. The stock has generated returns of 17.55 percent in the past one year and has gained 3.75 percent over the last one month.
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