You are on page 1of 13

Maruti Suzuki India Limited

Q3Fy08 Financial Results Oct07 Dec07


29th January 2008

Safe Harbour
1. This presentation might contain forward looking statements which involve a number of risks, uncertainties and other factors that could cause the actual results to differ materially from those in the forward looking statements. Maruti undertakes no obligation to update these to reflect the events or circumstances thereof. This presentation also contains reference to the findings of various reports available in the public domain. Maruti takes no responsibility as to their accuracy or that the company subscribes to those findings. All comparisons have been done with the corresponding figure of same quarter last year (Q3Fy07) unless mentioned otherwise.

2.

3.

Agenda
1. Quarterly Highlights
2. 3.

Financial Performance and Ratios Operational Performance

4. Going Forward

Quarterly Highlights
Net Sales EBITDA PBT PAT 27% 23% 26% 24% Financials

Operations

Domestic Volumes Exports Market share

15% 52% 1%
4

Agenda
1. Quarterly Highlights
2. 3.

Financial Performance and Ratios Operational Performance

4. Going Forward

Financial Performance
Parameters
Net Sales (Rs Mn) Other Income (Rs Mn) EBITDA (Rs Mn) PBT (Rs Mn) Tax (Rs Mn) PAT (Rs Mn) Annualized EPS (Rs)*
* No guidance intended Q308 (Oct-Dec07) Q307 (Oct-Dec06) YTD08 (Apr-Dec07) YTD07 (Apr-Dec06)

46,540 1,707 7,839 6,828 2,158 4,670 64.7

36,642 1,284 6,356 5,440 1,676 3,764 52.1

130,974 5,824 23,682 20,677 6,346 14,331 66.1

101,788 3,934 18,328 16,112 4,978 11,134 51.4

Key Financial Ratios


As a Percentage of Net Sales

Parameters
PAT PBT EBDITA Other Income Material cost Employee cost Manufacturing & Admin Expenses Selling and Distribution Expenses Depreciation ROCE

Q3 (FY08) 10.0% 14.7% 16.8% 3.7% 76.8% 2.1% 5.6% 1.9% 1.9% 32.3%

Q3 (FY07) 10.3% 14.8% 17.3% 3.5% 75.5% 2.0% 6.1% 2.1% 2.1% 33.4%

Change
(0.3%) (0.1%) (0.5%) 0.2% 1.3% 0.1% (0.5%) (0.2%) (0.2%) (1.1%)
7

Some Insights
1. Average Realisation per vehicle increased by 8.8% due to change in the product mix with greater share of A3 and MUV in total sales. However QoQ there has been a fall of 2.5%.
Material Cost increased by 1.3% to 76.8% Product mix variance Higher Invoice Discount High commodity prices

2.

3.

Other Incomes were Rs 1,707 Mn out of which 50% was non operational. Operational part constituted (a) Scrap Sales of Rs 396 Mn (b) Cash discounts received from vendors Rs 224 Mn. Average yield realized on non- trade investments was 11.61%. Foreign Exchange gain realized was Rs 236 Mn.
8

4. 5.

Some Insights
6. Royalty (Running + Lump sum) increased by 27% to Rs 1,210 Mn - 75.43% of models under royalty vis--vis 65.53% - Royalty payable on realization per vehicle which has increased by 8.8% 7. Number of Employees (at the quarter end) increased to 6903 as against 5380 a year ago (at the qtr end). Power and Fuel cost Rs 364 Mn, an increase of 50%
Manesar Plant running at full capacity Increase in fuel cost by 30% from Aug07

8.

Agenda
1. Quarterly Highlights
2. 3.

Financial Performance and Ratios Operational Performance

4. Going Forward

10

Operational Performance
Total Sales
Market Domestic Exports Total Sales Segments Q308 units (A) 187,875 13,754 201,629 Q308 units (A) 17,320 134,293 11,728 23,475 1,059 187,875 % to Total sales 93.2% 6.8% 100% % to Total sales 9.2% 71.5% 6.2% 12.5% 0.6% 100% Q307 units (B) 163,108 9,073 172,181 Q307 units (B) 19,683 114,461 6,910 21,426 628 163,108 % to Total sales 94.7% 5.3% 100% % to Total sales 12.07% 70.17% 4.24% 13.14% 0.4% 100% Growth (A) vs (B) 15.18% 51.59% 17.10% Growth (A) Vs (B) (12.01%) 17.33% 69.73% 9.56% 68.63% 15.18%

Domestic

A1 A2 A3 C MUV Domestic Total

Market share (A+C Seg) at 58.49% - YoY Increase of 1.14% - QoQ Increase of 3.07%

11

Going Forward
1. 2. 3. 4. 5. Passenger vehicle industry growth expected to remain under pressure due to higher interest rates of financing and high base. New products in the pipeline for domestic and export markets. CAPEX being incurred for capacity expansion, R&D facilities, etc. implies higher depreciation & lower other income. Possibility of higher sales promotion and marketing expenditure to counter any discount moves by competition. Continued exposure to commodity prices like steel, aluminum, etc.

12

Thank You
www.marutisuzuki.com

13