MARUTI SUZUKI LTD - RESULTS FOR Q3 FY 2012-13 - Q/E DEC,2012. - NET SALES UP 46% YoY; NET PROFIT UP 144% YoY

MARUTI SUZUKI LTD

RESULTS FOR Q3 FY 2012-13

Q/E DEC,2012.

Q3: Oct-Dec (2012-13 Vs 2011-12) :

The Company registered Net Sales (net of excise) of Rs. 109,570 million, an increase of 45.6 per cent over the same period in the previous year. The growth in Net Sales was on account of higher volumes, favourable model mix and enhanced export realisation.

Net Profit during the quarter stood at Rs. 5,013 million, a growth of 143.8 per cent. The growth in Net Profit was primarily due to higher sales and good response to new models like Ertiga and Swift DZire. The Company's continued cost reduction efforts helped to drive profit in the quarter.

During the quarter, the Company sold 268,957 units in the domestic market, compared to 211,803 units, reflecting a growth of 27 per cent. The Company exported 32,496 units during the quarter, up 17.2 per cent.

9 Months: Apr-Dec (2012-13 Vs 2011-12)

In nine months of 2012-13, the Company's Net Sales (net of excise) stood at Rs. 295,563 million, an increase of 27.3 per cent over same period in the previous year.

Net Profit during nine months (2012-13) stood at Rs. 11,525 million, a growth of 15.8 per cent.

During the nine month period, the Company sold 742,175 units in the domestic market, reflecting a growth of 8.4 per cent. Exports during April-Dec 2012 stood at 85,550 units against 88,469 units in April-Dec 2011.

Current Market Price : Rs.1610.00

52 week high/low price : 1633.90/1051.00

RESULTS TABLE

Maruti Suzuki	31-Dec-12	30-Sep-12	%dif QoQ	31-Dec-11	%dif YoY
Net Sales	1095695	807011	35.77	771787	41.97
Total Expenditure	1066740	814392	30.99	776412	37.39
Profit before Interest, Dep. & Taxes	28955	-7381	492.29	-4625	726.05
Changes in inventories of fFG, SIT, WIP	-15873	25197	-163	-11853	33.92
Cost of materials	837604	586541	42.8	599531	39.71
Purchases of SIT	56684	49357	14.84	36648	54.67
Employee benefits	24123	23522	2.56	20902	15.41
Depreciation	35833	34704	3.25	29893	19.87
Other expenses	128369	95071	35.02	101291	26.73
Total expenses	1066740	814392	30.99	776412	37.39
Profit before tax	67563	27982	141.45	26130	158.56
Tax Expenses	17434	5237	232.9	5568	213.11
Net Profit	50129	22745	120.4	20562	143.79
Face Value of Share (in )	5	5	0	5	0
Paid-up Equity	14446	14446	0	14446	0
Basic EPS	17.35	7.87	120.46	7.12	143.68
Public holding (%)	45.79	45.79	0	45.79	0

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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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