Maruti Suzuki India (MARUTI) Q4 03/04 earnings summary

Executive summary

• FY03/04 sales exceeded 472,000 vehicles; gross sales revenue reached ₹112,840 million, up 25.8% YoY, with EPS more than tripling to ₹18.77.

• Higher volumes and operational efficiencies lifted PBT to ₹7,698 million and PAT to ₹5,421 million; the year also marked the first year as a listed public company.

Financial highlights

• Gross sales rose to ₹112,840 million from ₹89,679 million; net sales excluding excise increased 31.1% to ₹93,456 million.

• PAT increased 270.3% to ₹5,421 million from ₹1,464 million; PBT climbed 173% to ₹7,698 million from ₹2,821 million.

• Operating PBIT reached ₹4,379 million versus ₹574 million; total income was ₹97,510 million, up 31.5% net of excise.

• Consolidated PAT was ₹5,609 million and consolidated EPS was ₹19.42; consolidated prior-year comparisons were not presented.

Outlook and guidance

• Outlook called for healthy passenger-car industry growth, supported by economic expansion, affordable finance, roads and low car penetration; higher oil prices remained a concern.

• Compact cars, about 80% of the passenger-car market, were expected to remain dominant; continued leadership rested on product range, service and customer satisfaction.

• A 1.3-litre common-rail diesel engine project was planned to improve participation in diesel cars, nearly one-fifth of the passenger-car market.

• Near-term demand could be met through debottlenecking or an additional shift; new production facilities were under feasibility review for long-term capacity needs.