Maruti Suzuki India (MARUTI) Q4 14/15 earnings summary

Executive summary

• FY15 delivered record sales, revenue and profit despite a contracting passenger-vehicle market excluding these operations; total unit sales rose 11.9% to 1,292,415.

• Market share reached 45%, up from 42.1% in FY14; growth was supported by new models, wider reach and cost reduction.

Financial highlights

• Net sales rose 14.0% to ₹486,055 million; total revenue increased 14.1% to ₹508,022 million.

• PBT increased 33.1% to ₹48,682 million; PAT rose 33.4% to ₹37,112 million.

• EPS was ₹122.85 versus ₹92.13; reported current tax included a ₹1,036 million provision for earlier years.

• Total unit sales grew 11.9% to 1,292,415; domestic sales were 1,170,702 (+11.1%) and exports 121,713 (+20.1%).

Outlook and guidance

• Medium-term target: 2 million annual unit sales, supported by product expansion and preparation of the supplier and dealer value chain.

• FY16 planned a high number of new model launches; more than 100 NEXA outlets across 30+ cities were targeted by year-end.

• Gujarat plant production was expected to begin in 2017; a contract-manufacturing arrangement was to be put to a minority-shareholder vote.

• Outlook cited potential economic recovery, lower fuel prices and possible easing of interest rates, while noting weak consumption and uncertainty in overseas markets.