Maruti Suzuki India Limited, the country’s largest passenger vehicle manufacturer, ended the fourth quarter of FY22 on a strong note as it reported robust growth in net profit over the same quarter last year as its revenues also showed a double-digit improvement. Here are the key takeaways from its earnings.
- Bottomline
The four-wheeler manufacturer reported a 57.7 percent increase in its standalone profit after tax (PAT) at Rs 1,839 crore.
For the full year period, however, PAT declined by 12.3 percent to Rs 3,766 crore as compared Rs 4,230 crore reported in the previous financial year.
- Topline
The company recorded standalone net sales of Rs 25,514 crore for the quarter, registering an on year growth of 11.1 percent compared to sales of Rs 22,188 crore registered during the same period last year.
For the full year, the growth in sales stood at 26 percent at Rs 83,798 crore as compared to Rs 66,562 crore achieved during FY21.
- Operating EBIT
Operating EBIT (earnings before interest and tax) for the quarter jumped 42.4 percent on year to Rs 1,780 crore as compared to Rs 1,250 crore in the same period last year.
EBIT margin for the quarter at 7 percent was higher by 160 bps over the last year’s quarter.
On a sequential basis, the EBIT margins improved by a healthy 290 bps from 4.1 percent in the previous quarter.
On a yearly basis, the EBIT margin was flat at 3.5 percent.
- Consolidated performance
Consolidated PAT grew 51 percent on year to Rs 1,876 crore for the quarter compared to Rs 1,241 crore last year. On a sequential basis, the consolidated profit inched up 80 percent from Rs 1,042 crore earned during the October – December period.
For the full-year period from April – March 2022, the consolidated PAT witnessed a decline of 12 percent at Rs 3,879 crore compared to a profit of Rs 4,389 crore achieved during FY21.
The consolidated revenues 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 came in higher by 15 percent from the previous quarter.
Consolidated revenues for FY22 jumped 26 percent to Rs 88,330 crore from the revenues of Rs 70,372 crore for last year.
- Production & pending bookings
The ongoing shortage of semi-conductors continue to impact the production of Maruti Suzuki, as the company had to bear a production loss of 270,000 units against the pending bookings of 268,000 units.
- Sales Volume
Total sales volume for the quarter stood at 488,830 units, which was 0.7 percent lower compared to the same quarter last year. Domestic volumes at 420,376 declined 8 percent on year, while the company achieved highest ever quarterly export sales t 68,454 units.
During the full year, the company sold 1,652,653 units, a growth of 13.4 percent compared to last year.
Domestic volumes increased 3.9 percent to 1,414,277 units, while the company recorded its highest ever sales in the export market at 238,386 units compared to 96,139 units last year.
- 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 dividend is 8 September, 2022 subject to the approval of the shareholders in the ensuing annual general meeting.
- Capacity Addition
Maruti board has approved expansion of capacity at Manesar unit by 1 lakh units
- Positive Factors
The factors that worked in favour of the company were its cost reduction efforts started showing results, which was evident in improvement of margins. Lower sales promotion expenses and increase in selling expenses.
- Negative Factors
Adverse commodity prices and shortage of semi-conductors were the biggest spoilers during the quarter as well as the year.
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