Maruti Suzuki India (MARUTI) Q4 15/16 earnings summary

Executive summary

• FY16 sales reached 1,429,248 vehicles, up 10.6% YoY; domestic market share rose for a fourth consecutive year to 46.8%, its highest in 14 years.

• Total revenue increased 14.6% to ₹582,082 million; PBT rose 34.2% to ₹65,350 million and PAT grew 23.2% to ₹45,714 million.

Financial highlights

• Net sales were ₹563,504 million versus ₹486,055 million in FY15, up 16%; total revenue was ₹582,082 million versus ₹508,022 million.

• PBT increased to ₹65,350 million from ₹48,682 million; PAT rose to ₹45,714 million from ₹37,112 million, up 23.2%.

• Basic and diluted EPS were ₹151.33 versus ₹122.85 in FY15.

• Domestic vehicle sales grew 12% to 1,305,351 units; exports increased 1.8% to 123,897 units.

• Operating cash flow was ₹84,331 million and free cash flow ₹58,519 million, up 33% and 84%, respectively, in the five-year performance table.

Outlook and guidance

• Target remains 2 million annual sales by 2020; three new models, retail expansion, stronger R&D and safety preparation are key growth initiatives.

• Gujarat production was expected to begin in early 2017; the initial phase was planned for 250,000 vehicles annually, adding supply beyond existing 1.5 million-unit capacity.

• Nexa outlet count was expected to double during FY17; continued expansion of sales and service touchpoints and export markets is planned.