MARUTI SUZUKI 2023-24 Annual Report Analysis

Tue, 6 Aug

MARUTI SUZUKI has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

MARUTI SUZUKI Income Statement Analysis

• Operating income during the year rose 19.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.2% in FY24 as against 11.2% in FY23.
• Depreciation charges increased by 8.5% and finance costs decreased by 23.3% YoY, respectively.
• Other income grew by 80.8% YoY.
• Net profit for the year grew by 63.2% YoY.
• Net profit margins during the year grew from 7.0% in FY23 to 9.5% in FY24.

MARUTI SUZUKI Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,184,099	1,418,582	19.8%
Other income	Rs m	22,647	40,935	80.8%
Total Revenues	Rs m	1,206,746	1,459,517	20.9%
Gross profit	Rs m	132,718	187,804	41.5%
Depreciation	Rs m	48,460	52,558	8.5%
Interest	Rs m	2,523	1,936	-23.3%
Profit before tax	Rs m	104,382	174,245	66.9%
Tax	Rs m	21,745	39,363	81.0%
Profit after tax	Rs m	82,637	134,882	63.2%
Gross profit margin	%	11.2	13.2
Effective tax rate	%	20.8	22.6
Net profit margin	%	7.0	9.5

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MARUTI SUZUKI Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 260 billion as compared to Rs 228 billion in FY23, thereby witnessing an increase of 14.0%.
• Current assets rose 44% and stood at Rs 226 billion, while fixed assets rose 10% and stood at Rs 927 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,153 billion as against Rs 1,001 billion during FY23, thereby witnessing a growth of 15%.

MARUTI SUZUKI Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	746,002	856,360	14.8
Current Liabilities	Rs m	227,667	259,518	14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,001,060	1,153,041	15.2
Current assets	Rs m	156,692	226,135	44.3
Fixed Assets	Rs m	844,368	926,703	9.8
Total Assets	Rs m	1,001,060	1,153,041	15.2

MARUTI SUZUKI Cash Flow Statement Analysis

• MARUTI SUZUKI's cash flow from operating activities (CFO) during FY24 stood at Rs 168 billion, an improvement of 55.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -119 billion, an improvement of 34.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -41 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 9 billion from the Rs 8 billion net cash flows seen during FY23.

MARUTI SUZUKI Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	108,146	168,011	55.4%
Cash Flow from Investing Activities	Rs m	-88,205	-118,648	-
Cash Flow from Financing Activities	Rs m	-12,139	-40,620	-
Net Cash Flow	Rs m	7,802	8,743	12.1%

Current Valuations for MARUTI SUZUKI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 429.0, an improvement from the EPS of Rs 262.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12,429.0, stands at 27.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	3,766.2	4,512.0
TTM Earnings per share	Rs	262.8	429.0
Diluted earnings per share	Rs	262.8	429.0
Price to Cash Flow	x	19.9	17.7
TTM P/E ratio	x	32.3	27.1
Price / Book Value ratio	x	3.5	3.9
Market Cap	Rs m	2,645,902	3,317,726
Dividends per share (Unadj.)	Rs	90.0	125.0

Ratio Analysis for MARUTI SUZUKI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY24, from 0.7x during FY23. 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 improved and stood at 91.0x during FY24, from 42.4x during FY23. 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 improved and stood at 15.8% during FY24, from 11.1% during FY24. 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 improved and stood at 20.6% during FY24, from 14.3% during FY23. 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 improved and stood at 11.9% during FY24, from 8.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.7	0.9
Debtors’ Days	Days	10	12
Interest coverage	x	42.4	91.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	11.9
Return on equity	%	11.1	15.8
Return on capital employed	%	14.3	20.6

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 9,463.3 to Rs 12,429.0, registering a gain of Rs 2,965.7 or around 31.3%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 56,730.3 (up 1.6%). Over the last one year it has moved up from 35,092.9 to 56,730.3, a gain of 21,637 points (up 61.7%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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