MARUTI SUZUKI INDIA LTD = RESULTS FOR = Q4 FY 12 = FY 2012 = Q4 NPT UP 17.2% YoY = FY 12 NPT DOWN 28.6% YoY = FY 13 COULD BE GOOD

Maruti Suzuki India Limited

Financial Results 2011-12

Maruti Suzuki India Limited has declared the following financial results for the quarter ending March 31, 2012 and for the full year 2011-12 here today.

Quarter 4 2011-12

                                Q4 2011-12          Q4 2010-11          % change

Net Sales             Rs. 114,864 Mn Rs 97,967 Mn     Up by 17.2%

Net Profit            Rs. 6,398 Mn      Rs. 6,599 Mn      Up by 17.2%

Total Volume     360,334 nos        343,340 nos        Up by 4.9%

During the Quarter, the Company sold a total of 360,334 units as compared to 343,340 units in the same period previous year reflecting a growth of 4.9 per cent.

While adverse currency movements made a significant impact during the Quarter, the Company was able to largely offset it through localization and internal cost control.

Financial Year 2011-12

                                2011-12                2010-11                % change

Net Sales             Rs. 347,059 Mn Rs. 358,490 Mn Down by 3.2%

Net Profit            Rs. 16,351 Mn    Rs. 22,887 Mn    Down by 28.6%

Total Volume     1,133,695 nos     1,271,005 nos     Down by 10.8%

Domestic             1,006,316 nos     1,132,739 nos     Down by 11.2%

Exports                 127,379 nos        138,266 nos        Down by 7.9%

For the year, the Company’s bottomline was impacted by adverse currency movement and increased commodity prices. The overall slowdown in the car market, including the skew towards diesel cars, also affected performance.

Dividend maintained at 150 %. Dividend in 2010-11 was also at 150 %

Financial Highlights 

Q4 FY12 & Growth over Q3 FY12

Ø  Sales Volume 360,334 Veh. 50.4%

Ø  Net Sales 114,864 Mn 52.6%

Ø  Op. EBIDTA 8,585 Mn 112.8%

Ø  PBT 8,040 Mn 207.6%

Ø  PAT 6,398 Mn 211.2%

Key Financial Ratios (% of Net Sales)

Ø  Parameter::  Q4 FY12 :: Q3 FY12 :: Change bps

Ø  Material Cost :: 81.3 :: 81.2 :: 10

Ø  Employee Cost :: 2.2 :: 2.8 :: (60)

Ø  S & D expenses :: 2.6 :: 3.0 :: (40)

Ø  Mng & Admin expenses :: 8.6  :: 10.4  ::  (180)

Ø  Royalty :: 5.1  ::  6.0  :: (90)

Ø  Other Mnfng expenses  :: 3.5  ::  4.4  :: (90)

Ø  Op. EBIDTA :: 7.5 :: 5.4 :: 210

Ø  Depreciation :: 2.9 :: 4.0 :: (110)

Ø  PBT :: 7.0 :: 3.5 ::  350

Ø  PAT :: 5.6 :: 2.7 :: 290

Ø  Other Non-Op. Income ::  2.6 ::  2.3 :: 30

Financial Analysis Q4 FY12 vs Q3 FY12

Material Cost to Net Sales – higher by 10 bps

Ø  Impact of vendor compensation

Ø  Benefit of net price increase

Ø  Cost reduction efforts

Other expenses to Net Sales – lower by 220bps

Ø  M2M reversal on royalty payout

Ø  Benefit on economies of scale

Financial Highlights Q4 FY12 & Growth over Q4 FY11

Ø  Sales Volume 360,334 Veh. 4.9%

Ø  Net Sales 114,864 Mn 17.2%

Ø  Op. EBIDTA 8,585 Mn (15.3)%

Ø  PBT 8,040 Mn (2.7)%

Ø  PAT 6,398 Mn (3.0)%

Financial Highlights FY12 & Growth over FY11

Ø  Sales Volume :: 1,133,695 Veh. (10.8)%

Ø  Net Sales       ::    347,059 Mn (3.2)%

Ø  Op. EBIDTA    ::      25,129 Mn (30.9)%

Ø  PBT                ::     21,462 Mn (31.0)%

Ø  PAT                ::     16,351 Mn (28.6)%

Key Financial Ratios (% of Net Sales)

Ø  Parameter ::  FY12 :: FY11 :: Change bps

Ø  Material Cost :: 80.9 :: 79.0 :: 190

Ø  Employee Cost :: 2.4 ::  2.0 ::   40

Ø  Selling & Distribution expenses ::2.9 ::2.7 :: 20

Ø  Manufacturing expenses  :: 9.1  :: 8.3  :: 80

Ø  Royalty  ::5.4  :: 5.5  :: (10)

Ø  Other Manufacturing expenses  :: 3.7  :: 2.8  :: 90

Ø  Op. EBIDTA :: 7.2 :: 10.1 :: (290)

Ø  Depreciation :: 3.3 :: 2.8 :: 50

Ø  PBT :: 6.2 :: 8.7 :: (250)

Ø  PAT  :: 4.7 :: 6.4 :: (170)

Ø  Other Non-Op. Income :: 2.4 :: 1.4 :: 100

FINANCIAL ANALYSIS :: FY 12  vs  FY 11

Key Financial Ratios (% of Net Sales)

Parameter ::  FY12 ::  FY11 ::  Change bps

Material Cost :: 80.9 :: 79.0 :: 190

Employee Cost :: 2.4 :: 2.0 :: 40

S & D expenses :: 2.9 :: 2.7 :: 20

Manfng expenses  :: 9.1 :: 8.3  ::  80

Royalty  ::  5.4 :: 5.5 ::  (10)

Other Manfng expenses  :: 3.7  :: 2.8  :: 90

Op. EBIDTA ::  7.2 ::  10.1 ::  (290)

Depreciation ::  3.3 ::  2.8 ::  50

PBT :: 6.2 ::  8.7 :: (250)

PAT ::  4.7 ::  6.4 ::  (170)

Other Non-Op. Income ::  2.4 ::  1.4 :: 100

Financial Analysis FY12 vs FY11

Material Cost to Net Sales – higher by 190bps

Ø  Unfavorable exchange rate

Ø  Commodity price increase

Ø  Net price increase

Ø  Cost reduction efforts

Employee Cost to Net Sales – higher by 40bps

Ø  Increase in number of employees & increments

Depreciation to Net Sales – higher by 50bps

Ø  Increase due to Manesar plant-B

Going Forward

Ø  Popular new models recently launched

Ø  Increased diesel engine availability

Ø  Entry into UV segment

Ø  Enhanced capacity from Manesar-B line

Ø  Macroeconomic & fuel price uncertainty

Ø  Foreign exchange uncertainty but more stable than past

COMMENTS : While the company’s sales performance is likely to be good in FY 13, it’s financial performance is being impacted by several factors and needs watch. If RBI continues with its liquidity easing policy coupled with lowering of Interest Rates -  FY 13 can be good for Maruti and other Auto companies. We need to watch the Q1 FY 13 performance. The April’12 Sales are very Good

APRIL,2012 : Maruti Suzuki India Limited sold a total of 100,415 units in April 2012 a growth of 3.4 per cent. This includes 10,160 units for export, a growth of 1.5 per cent. The Company had sold a total of 97,155 units in April 2011.

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