MARUTI SUZUKI 2021-22 Annual Report Analysis

Sun, 21 Aug

MARUTI SUZUKI has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MARUTI SUZUKI Income Statement Analysis

• Operating income during the year rose 25.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY22 as against 7.6% in FY21.
• Depreciation charges decreased by 8.1% and finance costs increased by 24.4% YoY, respectively.
• Other income declined by 40.6% YoY.
• Net profit for the year declined by 11.9% YoY.
• Net profit margins during the year declined from 6.0% in FY21 to 4.2% in FY22.

MARUTI SUZUKI Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	703,720	883,298	25.5%
Other income	Rs m	29,363	17,447	-40.6%
Total Revenues	Rs m	733,083	900,745	22.9%
Gross profit	Rs m	53,516	57,062	6.6%
Depreciation	Rs m	30,341	27,890	-8.1%
Interest	Rs m	1,018	1,266	24.4%
Profit before tax	Rs m	51,520	45,353	-12.0%
Tax	Rs m	9,319	8,177	-12.3%
Profit after tax	Rs m	42,201	37,176	-11.9%
Gross profit margin	%	7.6	6.5
Effective tax rate	%	18.1	18.0
Net profit margin	%	6.0	4.2

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MARUTI SUZUKI Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 170 billion as compared to Rs 162 billion in FY21, thereby witnessing an increase of 5.0%.
• Current assets fell 7% and stood at Rs 168 billion, while fixed assets rose 8% and stood at Rs 577 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 745 billion as against Rs 714 billion during FY21, thereby witnessing a growth of 4%.

MARUTI SUZUKI Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	525,006	553,335	5.4
Current Liabilities	Rs m	162,139	170,235	5.0
Long-term Debt	Rs m	28	0	-100.0
Total Liabilities	Rs m	713,761	745,144	4.4
Current assets	Rs m	180,970	167,934	-7.2
Fixed Assets	Rs m	532,791	577,210	8.3
Total Assets	Rs m	713,761	745,144	4.4

MARUTI SUZUKI Cash Flow Statement Analysis

• MARUTI SUZUKI's cash flow from operating activities (CFO) during FY22 stood at Rs 18 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -16 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -57 million from the Rs 200 million net cash flows seen during FY21.

MARUTI SUZUKI Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	88,562	18,405	-79.2%
Cash Flow from Investing Activities	Rs m	-72,913	-2,392	-
Cash Flow from Financing Activities	Rs m	-15,449	-16,070	-
Net Cash Flow	Rs m	200	-57	-

Current Valuations for MARUTI SUZUKI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 123.1, an decline from the EPS of Rs 139.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,777.5, stands at 61.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 35.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2,329.6	2,924.1
TTM Earnings per share	Rs	139.7	123.1
Diluted earnings per share	Rs	139.7	123.1
Price to Cash Flow	x	28.6	35.8
TTM P/E ratio	x	49.1	61.9
Price / Book Value ratio	x	3.6	4.2
Market Cap	Rs m	1,873,199	2,329,340
Dividends per share (Unadj.)	Rs	45.0	60.0

Ratio Analysis for MARUTI SUZUKI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.1x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 36.8x during FY22, from 51.6x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 6.7% during FY22, from 8.0% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 8.4% during FY22, from 10.0% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 5.2% during FY22, from 6.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	1.0
Debtors’ Days	Days	7	8
Interest coverage	x	51.6	36.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.1	5.2
Return on equity	%	8.0	6.7
Return on capital employed	%	10.0	8.4

To see how MARUTI SUZUKI has performed over the last 5 years, please visit here.

MARUTI SUZUKI Share Price Performance

Over the last one year, MARUTI SUZUKI share price has moved up from Rs 6,847.6 to Rs 8,777.5, registering a gain of Rs 1,930.0 or around 28.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 29,733.5 (down 1.4%). Over the last one year it has moved up from 22,177.8 to 29,733.5, a gain of 7,556 points (up 34.1%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for MARUTI SUZUKI and quarterly results for MARUTI SUZUKI)

Read: Latest Annual Report Analysis of MARUTI SUZUKI