Maruti Suzuki India (MARUTI) Q4 17/18 earnings summary

Executive summary

• FY18 sales reached 1,779,574 vehicles; net sales were ₹781,048 million, up 16.7%, while PAT rose 5.1% to ₹77,218 million.

• Domestic PV growth of 13.8% outpaced industry growth of 7.9%; strong new-model demand and capacity constraints shaped the year.

Financial highlights

• Net sales were ₹781,048 million versus ₹669,094 million; PBT rose 10.5% to ₹110,034 million and PAT increased 5.1% to ₹77,218 million.

• Revenue from operations was ₹819,944 million; total revenue including other income was ₹840,399 million, versus ₹795,663 million in FY17.

• Operating cash flow increased to ₹117,850 million from ₹102,793 million; free cash flow was ₹79,197 million, up 14.7%.

• Domestic sales were 1,653,500 units, up 14.46%; exports were 126,074 units, up 1.62%.

Outlook and guidance

• Targeted double-digit domestic-market growth for a fifth consecutive year; the second Suzuki Motor Gujarat plant was expected to start in Q4 FY19.

• Production goal: 2 million vehicles by 2020; longer-term ambition of 3 million cars annually by 2025.

• EV launch in India planned for 2020; BS-VI compliance across engine and model variants targeted by 2020.

• Future investment priorities include R&D, network expansion and product development; hybrid and EV plans depend on policy, charging infrastructure and battery-cost viability.