financial analysis of maruti suzuki

8/7/2019 financial analysis of maruti suzuki

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SUBMITTED BY:- ABHISHEK AGRAHARI BBA- 2 SAM

ACCOUNTS ASSIGNMENT

COMPANY MARUTI SUZUKI & MAHINDRAMOTORS YEAR 2009-2010

NAME OF COMPANY:- MARUTI SUZUKI

YEAR:-2009-10

* INTRODUCTION OF COMPANY:-

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is asubsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of theIndian car market for over two and a half decades. The company has twomanufacturing facilities located at Gurgaon and Manesar, south of New Delhi,India. Both the facilities have a combined capability to produce over a 1.2 million(1,200,000) passenger car units annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013.For this the company will be investing around Rs. 60 Billion (Rs 6,000 Crores)over the period till 2013. The company offers a wide range of cars across different segments. It offers 14brands and over 150 variants - Maruti 800, people movers, Omni and Eeco ,international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4 and Swift DZire In an environmentfriendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNGoption on 5 models across vehicle segments. These include Eeco, Alto, Estilo,Wagon R and Sx4. In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufactureand sell One Million cars in a year.


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Maruti Suzuki has employee strength over 7,600 (as at end March 2010), In 2009-10, the company sold a record 10,18,365 vehicles including 1,47,575units of exports. With this, at the end of March 2010, Maruti Suzuki had a marketshare of 53.3 per cent of the Indian passenger car market (including C segment). Maruti Suzuki's revenue has grown consistently over the years.

(Rs. in Million)

Year Net Sales Year Net Sales

2008-09

2,03,583

2009-10

3, 01 ,198

INTRODUCT ION OF MAH INDRAThe two brothers, J.C. Mahindra and K.C. Mahindra andGhulam Mohammed formed the company, Mahindra & Mohammed, in 1945. Mahindra & Mohammed Limitedwas incorporated on October 2, 1945, as a privatelimited company. The company was renamedas Mahindra & Mahindra Ltd ., on January 13, 1948. It

was populary know by the acronym M&M. The companyintroduced Willys GPU vehicles in India in October1947, when the first batch of seventy-five Willys GPUvehicles, were rolled onto the Indian roads. [1] M&Mbegan producing light commercial vehicles (LCVs) in1965. M&M's automotive division was c ...


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MARUT I SUZUK I P rofit loss account

Mar ' 10 Mar ' 09

Income Operating income 29,317.70 20,729.40

Exp enses Material consumed 22,435.40 16,339.80

Manufacturing expenses 1,278.20 909.70

Personnel expenses 545.60 471.10

Selling expenses 916.00 738.20

Adminstrative expenses 404.60 389.20

Expenses capitalised - -22.30 Cost of sales 25,579.80 18,825.70

Operating profit 3,737.90 1,903.70

Other recurring income 617.70 547.60

Adjusted PBDIT 4,355.60 2,451.30

Financial expenses 33.50 51.00


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Mar ' 10 Mar ' 09

Depreciation 825.00 706.50

Other write offs - -

Adjusted PBT 3,497.10 1,693.80

Tax charges 1,094.90 457.10 Adjusted PAT 2,402.20 1,236.70

Non recurring items 44.30 -55.90

Other non cash adjustments 51.10 37.90

Reported net profit 2,497.60 1,218.70

Earnigs before appropriation 10,501.80 8,244.40

Equity dividend 173.30 101.10

Preference dividend - -

Dividend tax 28.80 17.20

Retained earnings 10,299.70 8,126.10

(Rs crore)B alance sheet

Mar ' 10 Mar ' 09

Sources of funds

Owner's fund

Equity share capital 144.50 144.50

Share application money - - Preference share capital - -

Reserves & surplus 11,690.60 9,200.40

L oan funds

Secured loans 26.50 0.10

Unsecured loans 794.90 698.80

Tot al 12,656.50 10,043.80

U ses of funds

Fixed asse t s

G ross block 10,406.70 8,720.60

Less : revaluation reserve - -

Less : accumulated depreciation 5,382.00 4,649.80

Net block 5,024.70 4,070.80

Capital work-in-progress 387.60 861.30

Investments 7,176.60 3,173.30


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Mar ' 10 Mar ' 09

Net current assets

Current assets, loans & advances 3,856.00 5,570.00

Less : current liabilities & provisions 3,788.40 3,631.60

Total net current assets 67.60 1,938.40

Miscellaneous expenses not written - - - - -

Tot al 12,656.50 10,043.80

Notes:

Book value of unquoted investments 11.10 3,162.20

Market value of quoted investments 215.10 108.70

Contingent liabilities 3,657.20 1,901.70

Number of equity sharesoutstanding (Lacs) 2889.10 2889.10

C ash flow

Mar ' 10 Mar ' 09

Profit before tax 3,592.50 1,675.80

Net cashflow-operating activity 2,887.40 1,193.30

Net cash used in investing activity -4,783.30 951.40

Netcash used in fin. activity 55.10 -536.20

Net inc/dec in cash and equivlnt -1,840.80 1,608.50 Cash and equivalnt begin of year 1,939.00 330.50

Cash and equivalnt end of year 98.20 1,939.00

RatiosMar ' 10 Mar ' 09

P er share ratios Adjusted EPS (Rs) 83.15 42.81

Adjusted cash EPS (Rs) 111.70 67.26

Reported EPS (Rs) 86.45 42.18

Reported cash EPS (Rs) 115.00 66.64

Dividend per share 6.00 3.50

Operating profit per share (Rs) 129.38 65.89

Book value (excl rev res) per share (Rs) 409.65 323.45

Book value (incl rev res) per share (Rs.) 409.65 323.45


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Mar ' 10 Mar ' 09

Net operating income per share (Rs) 1,014.77 717.50

Free reserves per share (Rs) 403.82 318.45

P rofitability ratios

Operating margin (%) 12.74 9.18

G ross profit margin (%) 9.93 5.77

Net profit margin (%) 8.34 5.72

Adjusted cash margin (%) 10.78 9.13

Adjusted return on net worth (%) 20.29 13.23

Reported return on net worth (%) 21.10 13.04

Return on long term funds (%) 28.80 17.48

L everage ratios Long term debt / Equity 0.03 0.06

Total debt/equity 0.06 0.07

Owners fund as % of total source 93.51 93.04

Fixed assets turnover ratio 2.82 2.38

L iquidity ratios Current ratio 1.02 1.53

Current ratio (inc. st loans) 0.91 1.51

Quick ratio 0.67 1.26

Inventory turnover ratio 30.47 30.46

P ayout ratios Dividend payout ratio (net profit) 8.09 9.70

Dividend payout ratio (cash profit) 6.08 6.14

Earning retention ratio 91.59 90.44

Cash earnings retention ratio 93.74 93.92

C overage ratios Adjusted cash flow time total debt 0.25 0.35

Financial charges coverage ratio 130.02 48.06

Fin. charges cov.ratio (post tax) 100.18 38.75

C om p onent ratios Material cost component (% earnings) 77.21 77.10

Selling cost Component 3.12 3.56

Exports as percent of total sales 15.49 7.24

Import comp. in raw mat. consumed 12.89 11.70


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Mar ' 10 Mar ' 09

Long term assets / total Assets 0.76 0.59

Bonus component in equity capital (%) - -

A nnual results in brief

Mar ' 10 Mar ' 09

Sales 29,623.01 20,852.52


Interest 33.50 50.98

G ross profit 4,417.55 2,382.42

EPS (Rs) 86.45 42.18

A nnual results in detailsMar ' 10 Mar ' 09

Other income 496.76 601.34

Stock adjustment -193.31 281.87

Raw material 21,701.73 15,235.27

Power and fuel - -

Employee expenses 545.64 471.09

Excise - -

Admin and selling expenses - -

Research and development expenses - -

Expenses capitalised - -

Other expenses 3,614.66 3,032.23

Provisions made - -


Taxation 1,094.91 457.14

Net profit / loss 2,497.62 1,218.74

Extra ordinary item - -

Prior year adjustments - - Equity capital 144.46 144.46

Equity dividend rate - -

Agg.of non-prom. shares (Lacs) 1322.92 1322.92

Agg.of non promotoHolding (%) 45.79 45.79

OPM (%) 13.35 8.79


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Mar ' 10 Mar ' 09

G PM (%) 14.67 11.10

NPM (%) 8.29 5.68

MAH INDRA MOTORS P rofit loss account

Mar ' 10 Mar ' 09

Income Operating income 18,516.33 13,081.08

Exp enses Material consumed 12,437.87 9,365.00

Manufacturing expenses 217.89 174.05

Personnel expenses 1,199.85 1,024.52

Selling expenses 802.02 575.34

Adminstrative expenses 901.45 700.45

Expenses capitalised -59.55 -42.83

Cost of sales 15,499.53 11,796.53


Other recurring income 317.99 305.98

Adjusted PBDIT 3,334.79 1,590.53

Financial expenses 156.85 134.12


Other write offs - -

Adjusted PBT 2,807.16 1,164.90

Tax charges 759.00 199.69

Adjusted PAT 2,048.16 965.21

Non recurring items -32.90 -173.33

Other non cash adjustments 72.49 48.97

Reported net profit 2,087.75 840.85

Earnigs before appropriation 5,453.07 3,807.00

Equity dividend 549.52 278.83

Preference dividend - -

Dividend tax 74.23 33.23


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Mar ' 10 Mar ' 09

Retained earnings 4,829.32 3,494.94 ti

B alance sheet

Mar ' 10 Mar ' 09

Sources of funds

Owner's fund

Equity share capital 282.95 272.62

Share application money 8.01 -

Preference share capital - -

Reserves & surplus 7,527.60 4,959.26

L oan fundsSecured loans 602.45 981.00

Unsecured loans 2,277.70 3,071.76

Tot al 10,698.71 9,284.64

U ses of funds

Fixed asse t s

G ross block 4,866.18 4,653.66

Less : revaluation reserve 11.67 12.09

Less : accumulated depreciation 2,537.77 2,326.29

Net block 2,316.74 2,315.28

Capital work-in-progress 1,374.31 886.96

Investments 6,398.02 5,786.41

Net current assets

Current assets, loans & advances 6,224.56 5,081.20

Less : current liabilities & provisions 5,619.04 4,797.76

Total net current assets 605.52 283.44

Miscellaneous expenses not written 4.12 12.55

Tot al 12,656.50 9,284.64

Notes:

Book value of unquoted investments 4,806.15 4,305.50

Market value of quoted investments 12,216.75 3,218.81

Contingent liabilities 2,020.79 1,220.39

Number of equity sharesoutstanding (Lacs) 5659.08 2726.16


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C ash flow

Ratios

Mar '10

Mar '09

P er shareratios

Adjusted EPS(Rs) 36.19 35.41

Adjusted cashEPS (Rs) 42.74 46.10

Reported EPS(Rs) 36.89 30.69

Reported cashEPS (Rs) 43.44 41.39

Dividend per share 9.50 10.00

Operating profitper share (Rs) 53.31 47.12

Book value(excl rev res)per share (Rs) 137.95 191.45

Book value(incl rev res)per share (Rs.) 138.15 191.90

Net operating

income per share (Rs) 327.20 479.84

Free reservesper share (Rs) 120.24 170.32

P rofitabilityratios

Operatingmargin (%) 16.29 9.81

Mar ' 10 Mar ' 09

Profit before tax 2,756.00 1,026.20

Net cashflow-operating activity 2,336.49 1,631.30

Net cash used in investing activity -1,345.44 -1,941.00

Netcash used in fin. activity -783.87 696.91

Net inc/dec in cash and equivlnt 207.18 387.21

Cash and equivalnt begin of year 1,543.63 1,174.62

Cash and equivalnt end of year 1,750.81 1,561.83


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Mar '10

Mar '09

G ross profitmargin (%) 14.29 7.59

Net profitmargin (%) 11.08 6.25

Adjusted cashmargin (%) 12.84 9.38

Adjusted returnon net worth(%) 26.23 18.49

Reported returnon net worth(%) 26.74 16.03

Return on longterm funds (%) 27.73 14.51

L everage

ratios

Long term debt/ Equity 0.46 0.83

Totaldebt/equity 0.36 0.77

Owners fund as% of totalsource 73.05 56.34

Fixed assetsturnover ratio 3.85 2.84

L iquidity

ratios

Current ratio 1.11 1.06

Current ratio(inc. st loans) 1.11 0.90

Quick ratio 0.86 0.83

Inventoryturnover ratio 17.91 14.56

P ayoutratios

Dividendpayout ratio(net profit) 29.87 37.29

Dividendpayout ratio(cash profit) 25.37 27.65

Earningretention ratio 69.55 67.67


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Mar '10

Mar '09

Cash earningsretention ratio 74.22 75.17

C overageratios

Adjusted cashflow time totaldebt 1.19 3.22

Financialchargescoverage ratio 21.26 11.86

Fin. chargescov.ratio (posttax) 16.67 9.41

C om p onentratios

Material costcomponent (%earnings) 67.30 70.39

Selling costComponent 4.33 4.39

Exports aspercent of totalsales 4.11 5.28

Import comp. inraw mat.consumed 1.51 1.39

Long termassets / totalAssets 0.61 0.63

Bonuscomponent inequity capital(%) 60.29 62.58


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Mar '10

Mar '09

A nnual results in brief

Mar ' 10 Mar ' 09

Sales 18,602.11 13,093.68


Interest 27.81 45.26

G ross profit 3,126.78 1,317.71

EPS (Rs) 36.89 15.35

A nnual results in detailsMar ' 10 Mar ' 09

Other income 199.35 270.34

Stock adjustment -23.69 156.29

Raw material 11,695.56 8,771.79

Power and fuel - -

Employee expenses 1,198.47 1,024.61

Excise - -

Admin and selling expenses - -

Research and development expenses - -

Expenses capitalised - -

Other expenses 2,776.53 2,048.36


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Mar ' 10 Mar ' 09

Provisions made - -


Taxation 759.00 199.69

Net profit / loss 2,087.75 836.78

Extra ordinary item 90.75 10.27

Prior year adjustments - -

Equity capital 282.95 272.62

Equity dividend rate - -

Agg.of non- prom. shares (Lacs) 3961.46 1788.77

Agg.of non promotoHolding (%) 68.49 64.15

OPM (%) 15.89 8.34

G PM (%) 16.63 9.86

NPM (%) 11.10 6.26

MY OVER V IEW ABOUT MARUT I AND MAH INDRA

y Total current assets of maruti in mar 2009 is10,043.80 and total current assets in mar201012,656.50 ..

y Total sales of maruti in mar 2009 is 20,852.52cr.

And tatal sales of maruti in mar 2010 is 29,623.01cr y Total gross profit of maruti in mar 2009 is 2,382.42cr

Total gross profit of maruti in mar 2010 is 4,417.55 cr.y Total current assets of Mahindra in mar 2009 9,284.64

Total current assets of Mahindra in mar 201012,656.50

y Total sales of Mahindra in 2009 is 13,093.68cr. Totalsales of Mahindra in 2010 is 18,602.11 cr.

y Total gross profit of Mahindra in mar.2009 1,317.71cr. Total gross profit of Mahindra in mar 2010 3,126.78cr.


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y Total current assets of Maruti is 12,656.50 cr.and totalcurrent assets of Mahindra is 10,698.71 .

y Total assets of Maruti is 176136.00 total assets of

Mahindra is 174810.35.y G ross Profit of Maruti is 4,417.55 cr. G ross Profit of

Mahindra is 3,126.78 cr.y Sales of Maruti is 29,623.01cr and sales of Mahindra

is 18,602.11 cr..

THANK YOU

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financial analysis of maruti suzuki