Maruti Suzuki India (MARUTI) Q4 01/02 earnings summary

Executive summary

• Returned to profit in FY2001-02 after the first-ever annual loss, driven by steady sales volume, lower manufacturing and component costs, quality improvements and inventory control.

• Vehicle production reached 358,108 units and sales 352,404; domestic sales grew 1% and market share held at 58% in a 12-player market.

• Launched Versa and expanded finance, insurance, fleet management and pre-owned-car services, broadening the offer from vehicles to mobility solutions.

Financial highlights

• Sales and other income were Rs 94,103 million, versus Rs 92,533 million in FY2000-01; operating profit rose to Rs 5,247 million from Rs 931 million.

• Profit before tax was Rs 1,183 million versus a Rs 2,692 million loss; net profit was Rs 1,045 million versus a Rs 2,694 million loss.

• Vehicle sales were Rs 84,260 million and spares/dies/moulds sales Rs 6,549 million; total sales were Rs 90,809 million.

• Export volume declined to 12,233 vehicles from 15,300; FOB value was Rs 2,172.16 million versus Rs 2,529.4 million.

Outlook and guidance

• Targeted a 50% reduction in manufacturing cost per vehicle over the three years to March 2005.

• Planned to consolidate new models, extend product variants and special editions, and build growth in WagonR and Alto in the premium small-car market.

• Maruti Finance, True Value and N2N were expected to expand customer reach and support product demand; True Value outlets were planned to rise to 30 by March 2003.