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Result Update
Maruti Suzuki India Ltd. 24thJuly 2009
BSE Code 532500
NSE Code MARUTI
Market Cap 398088.42
52 Week High/Low 1305.50/428.40
Industry Auto
Face Value Rs 5
Shares O/S 8,24,54,64,400
Avg Daily Vol (30 Days) 23.32
EPS 46.25
Book Value 353.66
Beta 0.84
P/E 29.79
P/B 3.90
Shareholding Pattern
21%
2%
54%
23%
Promoter owned Public owned
FIIs owned Others owned
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CMP Rs 1377.85
Target ---
Business Background
Maruti Suzuki, formerly known as Maruti Udyog is one of India's leading automobile
manufacturers and the market leader in the passenger car segment. Its first product-
Maruti 800 made its debut in December 1983. It accounts for over 50 per cent of the
total Indian passenger car market with respect to volumes. The company has a portfolio
of 11 car brands with over 50 variants, including the people's car-Maruti 800,
compact cars-Alto, Zen Estilo and WagonR, premium compact car-Swift, off-roader
jeep-Gypsy, mid-size sedan-Swift DZire, luxury sedan-SX4, MPVs-Omni and Versa
and luxury SUV- Grand Vitara. Maruti has predominantly been a small car maker.
Through a network of 500 dealer outlets and 2,445 service workshops, its national
reach is spread over 1,172 cities, the largest network by any automobile company
Consolidated Financial Matrix
Rs Million
Particulars Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10
Revenues 47535.80 49936.20 46258.10 64329.00 64930.00
Growth % ---- 5.05 -7.37 39.07 0.93
Expenses 42899.40 44779.10 43290.30 59836.00 56998.30
Operating profit 4636.40 5157.10 2967.80 4493.00 7931.70
Growth % ---- 11.23 -42.45 51.39 76.53
Other income 3287.80 960.40 1776.90 1054.40 2165.30
EBITDA 7924.20 6117.50 4744.70 5547.40 10097.00
Depreciation 1660.60 1658.40 1774.90 1971.40 1960.90
Interest 168.30 207.70 45.10 88.70 63.10
PBT 6095.30 4251.40 2924.70 3487.30 8073.00
Tax 1436.80 1290.20 789.00 1056.00 2237.60
Adjusted PAT 4658.50 2961.20 2135.70 2431.30 5835.40
Growth % ---- -36.43 -27.88 13.84 140.01
EPS 16.12 10.25 7.39 8.42 20.20
CEPS 21.87 15.99 13.54 15.24 26.98
OPM % 9.75 10.33 6.42 6.98 12.22
NPM% 9.80 5.93 4.62 3.78 8.99
The company has posted great results for the quarter ended June 2009. The net sales
stood at Rs.63402.60 million, up 34% from Rs.47310.30 million in the same period
last fiscal while on a sequential basis it is marginally up at the rate of 0.93%. Operating
profits have advanced to Rs.7931.70 million in Q1FY10 from Rs.4636.40 million
in Q1FY09, depicting a tremendous growth of 71.07%. The operating profit margins
have expanded by 247 bps in Q1FY10 to 12.22% as against 9.75% for the previous
quarter indicating operating efficiency of the company. The bottom line of the company
has surged to Rs.5835.40 million in latest quarter from Rs.4658.50 million for
the corresponding quarter last year indicating a growth of 25.26% while on a sequential
basis net profits witnessed a sharp rise of 140 percent. There is a dip in net profit
margins at 8.99% when compared with 9.80% clocked in the same quarter last year.
EPS for the quarter considered stood at Rs.20.20, up by 25.26 percent from previous
same period.
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Key take aways:

The company has registered good set of numbers for the quarter ended June 2009. Average
Realization per car went up by 13.5%.
Higher sales of new models and its entry into new market segments boosted quarterly profit.
Sales began to recover earlier this year
after a slew of stimulus packages from the government, including tax cuts, and a lowering of
borrowing rates by financial institutions,
as well as the introduction of new models by carmakers. Maruti sold 226,729 cars and sport-
utility vehicles in the first quarter, 18%
more than the year earlier. Exports more than doubled to 29,314 vehicles from 12,491 a
year earlier, helped by demand for the A-Star
small car in Europe. The company benefited as the cost of raw materials as a percentage of
net sales remained unchanged at 78.1% in
the April-June period, compared with 78% a year earlier. In addition to these factors, net
profit growth was helped by an easing of
commodity prices, sales mix moving in favor of higher end models and favorable foreign
exchange realizations. It also started selling
the Ritz, its seventh small car model, in May amid intensifying competition from Hyundai
Motor Co., General Motors Corp. and Fiat
SpA. In a nutshell, it can be said that company has come with decent set of numbers and is
expected to perform well in upcoming future.