Maruti Suzuki India (MARUTI) Q4 16/17 earnings summary

Executive summary

• FY17 delivered record sales and production; standalone net sales rose 19% to ₹669,094 million and PAT increased 37% to ₹73,377 million.

• Market share reached 47.4%, up 0.6 percentage points; EBITDA margin was 15.5%.

• Demand for Baleno and Vitara Brezza exceeded available capacity, leaving respective year-end waiting times of 22 and 21 weeks.

Financial highlights

• Standalone total revenue was ₹703,146 million, up 19.2%; PBT reached ₹99,413 million, up 33.5%, and PAT ₹73,377 million, up 36.8%.

• Standalone EBITDA was ₹103,530 million, up 17%; EPS was ₹242.91 versus ₹177.58 in FY16.

• Consolidated revenue from operations was ₹773,164 million; PBT was ₹101,272 million and PAT ₹75,110 million. Consolidated EPS was ₹248.64.

• Other income was ₹22,798 million standalone, including ₹21,203 million fair-value gains on debt mutual funds; higher non-operating income supported record profit.

• Operating cash flow was ₹102,847 million, up 21%; free cash flow was ₹69,124 million, up 18%.

Outlook and guidance

• FY18 target: double-digit growth, supported by product breadth, added Gujarat capacity and network expansion.

• Sales goal remained 2 million vehicles by 2020; Suzuki Motor Gujarat began production in February 2017 and is expected to ramp gradually.

• At least 3,500 sales outlets and ~5,000 workshops were expected to be needed over the next few years; land acquisition supports network growth.

• Hybrid models were being promoted while EV introduction remained conditional on customer readiness; a domestic lithium-ion battery plant was planned with Toshiba and Denso.