Maruti Suzuki India (MARUTI) Q4 02/03 earnings summary

Executive summary

• FY02-03 total income was Rs. 94,260 million and net profit Rs. 1,464 million; PBT rose 138% YoY despite sluggish conditions and domestic volume pressure.

• Export growth and cost, productivity and quality initiatives supported a recovery; new ownership-related services broadened revenue opportunities.

Financial highlights

• Total income Rs. 94,260 million vs Rs. 93,989 million; EBITDA Rs. 6,986 million vs Rs. 5,700 million; operating profit before interest and tax Rs. 3,379 million vs Rs. 1,947 million.

• PBT Rs. 2,821 million vs Rs. 1,183 million; PAT Rs. 1,464 million vs Rs. 1,045 million. FY02-03 tax expense included Rs. 1,006 million of deferred tax.

• Vehicle sales were 362,426 units and production 359,960 units; sales and other income in the audited P&L was Rs. 94,260 million.

• Operating cash flow was Rs. 7,705 million; cash and bank balances increased to Rs. 9,894 million from Rs. 719 million at FY02 close.

Outlook and guidance

• FY03-04 growth plans targeted Wagon R +56%, Alto +94% and Versa +200%, supported by SBI finance, dealer profitability and expanded finance, insurance and pre-owned-car services.

• Export outlook targeted 50,000 units in FY03-04; Alto had firm European orders exceeding 19,000 units through the August 2003 production month, with Middle East and Far East exports planned.

• Challenge 50 targeted 50% higher productivity and 30% lower cost per vehicle by FY04-05; continuing raw-material, power and freight inflation remained a concern.