Maruti Suzuki India (MARUTI) Q4 06/07 earnings summary

Executive summary

• FY06/07 was a record year: net sales reached Rs. 145,922 million, up 21.6% YoY, and PAT rose 31.4% to Rs. 15,620 million.

• Sales totaled 674,924 vehicles in domestic and export markets; passenger vehicle market share was 54.6%, including MPVs.

• Growth accelerated from 17.8% in H1 to 23.8% in H2 as new models launched and Manesar production came onstream.

Financial highlights

• Gross revenue, net of excise, was Rs. 152,523 million, up 22.2%; PBT increased 30.3% to Rs. 22,798 million.

• PAT was Rs. 15,620 million versus Rs. 11,891 million; reported EPS rose to Rs. 54.06 from Rs. 41.16.

• Net sales were Rs. 145,922 million versus Rs. 120,034 million; operating PBIT reached Rs. 17,190 million, up 28.2%.

• EBITDA was Rs. 25,888 million; EBITDA margin improved to 17.7% from 17.1%.

Outlook and guidance

• Suzuki and Maruti’s five-year investment plan totals Rs. 90 billion through 2010, supporting capacity, a new engine series, model launches and network expansion.

• FY07/08 export target: 55,000 units to non-European markets; FY09/10 target: 200,000 units, split evenly between Europe and non-Europe.

• European exports are planned to resume in 2009 with a new model; potential European volume cited at 100,000 units.

• Medium-term prospects depend on demand, new model response, capacity utilization and the pace of competing compact-car launches.