marutisuzuki financial analysis

8/11/2019 MarutiSuzuki Financial Analysis

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PRESENTATION

ON

MARUTI SUZUKI INDIA

LTD.


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PRESENTED BY

HENA .

ALKA AHUJA .

PGDFS


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INTRODUCTION

.


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1981- MARUTI UDYOG LTD was incorporated on under the

INDIAN COMPANIES ACT, 1956.

1982- License and Joint Venture agreement signed between Maruti

Udyog Ltd. & Suzuki Motor Corporation Japan(SMC).

1987- First lot of 500 cars exported to Hungary

1992- SMC increases its stake in Maruti to 50 percent.

2002- Maruti Finance in Mumbai with 10 Finance companies is

introduced.

Childrens park inaugurated in Delhi.SMC acquires majority stake in MUL (increases to 54.2%).

2003- IPO (JUNE- ISSUE oversubscribed 11.2 times)

Maruti gets listed on BSE and NSE- July.

2006- New car plant and the diesel engine facility commences

operations during 2006-2007 at Manesar, Haryana.

In November Maruti inaugurated a new Institute of Driving

Training and Research( IDTR) set up as a collaborative

project with Delhi Government at Sarai Kale Khan in South

Delhi.


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MANAGING DIRECTOR

Shinzo Nakanishi

CHAIRMAN OF THE BOARD

R.Bhargava

DavinderBrar OsamoSuzuki PallaviShroff AmalGanguli ManvinderBanga

DIRECTORS

ORGANIZATION STRUCTURE


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VISSION ANDMISSION

Customer

obsession

Fast, Flexible,

& Fast Movers

Innovation &

Creativity

Networking &

Partnerships

Openness &

Learning


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THE OBJECTIVES

Modernization of the Indian

Automobile Industry.

Production of fuel-efficient vehicles to

conserve scarce resources.

Production of large number of motorvehicles which was necessary for

economic growth.


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MARUTI CARS

ECO

RITZ

SWIFT

SX4


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WAGON-R

ALTO

ZEN ESTILO

MARUTI- 800


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MAJOR COMPETITORS

The major competitors for Maruti cars are;

Hyundai Motor India Limited

Tata Motors

Hindustan Motors

Mahindra & Mahindra

Toyota


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INDIAN AWARDS

No. 1 in Initial Quality StudyJD Power Total

Customer Satisfaction - TNS Study .

Car of the Year - BS Motoring .

Car of the Year - CNBC Autocar .

Best Value for Money Car .

Viewer's Choice - CNBC Autocar.


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CNBC Autocar Best Design and Styling .

Small Car of the Year - NDTV Profit .

Design Car of the Year - BBC Top Gear .

Car of the Year - Overdrive Number one premium compact car in

JD POWER INDIA APEAL STUDY 2007.

MARUTI SUZUKI WINS GOLDEN PEACOCK ECO-

INNOVATION AWARD.


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FINANCIAL ANALYSIS

Balance Sheet of


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Mar '05 Mar '06 Mar '07 Mar '08 Mar '0

12 mths 12 mths 12 mths 12 mths 12 mth

Sources Of Funds

Total Share Capital 144.50 144.50 144.50 144.50 144.5

Equity Share Capital 144.50 144.50 144.50 144.50 144.5

Share Application Money 0.00 0.00 0.00 0.00 0.0

Preference Share Capital 0.00 0.00 0.00 0.00 0.0Reserves 4,234.30 5,308.10 6,709.40 8,270.90 9,200.4

Revaluation Reserves 0.00 0.00 0.00 0.00 0.0

Networth 4,378.80 5,452.60 6,853.90 8,415.40 9,344.9

Secured Loans 307.60 71.70 63.50 0.10 0.1

Unsecured Loans 0.00 0.00 567.30 900.10 698.8

Total Debt 307.60 71.70 630.80 900.20 698.9

Total Liabilities 4,686.40 5,524.30 7,484.70 9,315.60 10,043.8


12 mths 12 mths 12 mths 12 mths 12 mth

Application Of Funds

Gross Block 5,053.10 4,954.60 6,146.80 7,285.30 8,720.6

Less: Accum. Depreciation 3,179.40 3,259.40 3,487.10 3,988.80 4,649.8

Net Block 1,873.70 1,695.20 2,659.70 3,296.50 4,070.8

Capital Work in Progress 42.10 92.00 238.90 736.30 861.3

Investments 1,516.60 2,051.20 3,409.20 5,180.70 3,173.3

Inventories 666.60 881.20 713.20 1,038.00 902.3

Sundry Debtors 599.50 654.80 747.40 655.50 918.9

Cash and Bank Balance 79.40 51.60 114.80 324.00 239.0

Total Current Assets 1,345.50 1,587.60 1,575.40 2,017.50 2,060.2

Loans and Advances 801.90 933.10 1,072.60 1,173.00 1,809.8

Fixed Deposits 950.00 1,350.00 1,308.00 0.00 1,700.0

Total CA, Loans & Advances 3,097.40 3,870.70 3,956.00 3,190.50 5,570.0

Deffered Credit 0.00 0.00 0.00 0.00 0.0

Current Liabilities 1,454.20 1,704.80 2,288.60 2,718.90 3,250.9

Provisions 389.20 480.00 490.50 369.50 380.7

Total CL & Provisions 1,843.40 2,184.80 2,779.10 3,088.40 3,631.6

Net Current Assets 1,254.00 1,685.90 1,176.90 102.10 1,938.4

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.0

Total Assets 4,686.40 5,524.30 7,484.70 9,315.60 10,043.8

Contingent Liabilities 893.60 1,289.70 2,094.60 2,734.20 1,901.7

Book Value (Rs) 151.56 188.73 237.23 291.28 323.4

Balance Sheet of

Maruti Suzuki India------------------- in Rs. Cr. -------------------

Profit & Loss account


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12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 13,458.20 14,898.80 17,358.40 21,200.40 23,381.50

Excise Duty 2,411.90 2,700.90 2,552.00 3,133.60 2,652.10

Net Sales 11,046.30 12,197.90 14,806.40 18,066.80 20,729.40

Other Income 187.50 184.40 338.10 494.00 491.70

Stock Adjustments 141.70 199.70 -200.70 336.30 -356.60

Total Income 11,375.50 12,582.00 14,943.80 18,897.10 20,864.50

Expenditure

Raw Materials 8,650.20 9,423.40 10,863.00 13,958.30 15,983.20

Power & Fuel Cost 58.10 57.20 97.40 147.30 193.60

Employee Cost 196.00 228.70 288.40 356.20 471.10

Other Manufacturing Expenses 215.70 302.40 392.40 523.30 716.10

Selling and Admin Expenses 374.27 349.51 483.26 521.48 751.06

Miscellaneous Expenses 121.73 145.39 239.44 287.62 303.44

Preoperative Exp Capitalised -22.40 -6.70 -14.30 -19.80 -22.30

Total Expenses 9,593.60 10,499.90 12,349.60 15,774.40 18,396.20


12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 1,594.40 1,897.70 2,256.10 2,628.70 1,976.60

PBDIT 1,781.90 2,082.10 2,594.20 3,122.70 2,468.30

Interest 36.00 20.40 37.60 59.60 51.00

PBDT 1,745.90 2,061.70 2,556.60 3,063.10 2,417.30

Depreciation 456.80 285.40 271.40 568.20 706.50

Other Written Off 16.30 0.00 0.00 0.00 0.00

Profit Before Tax 1,272.80 1,776.30 2,285.20 2,494.90 1,710.80

Extra-ordinary items 51.40 5.40 33.40 76.60 37.90

PBT (Post Extra-ord Items) 1,324.20 1,781.70 2,318.60 2,571.50 1,748.70

Tax 446.50 560.90 705.30 763.30 457.10

Reported Net Profit 853.60 1,189.10 1,562.00 1,730.80 1,218.70

Total Value Addition 943.40 1,076.50 1,486.60 1,816.10 2,413.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 57.80 101.10 130.00 144.50 101.10

Corporate Dividend Tax 8.20 14.20 21.90 24.80 17.20

Per share data (annualised)

Shares in issue (lakhs) 2,889.10 2,889.10 2,889.10 2,889.10 2,889.10

Earning Per Share (Rs) 29.55 41.16 54.07 59.91 42.18

Equity Dividend (%) 40.00 70.00 90.00 100.00 70.00

Profit & Loss account

of Maruti Suzuki India------------------- in Rs. Cr. -------------------


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2009 2008

CURRENT

RATIO

1.616 1.096

ANALYSIS: .The ideal level of current ratio is 2:1. The current assetshould be double that of current liability. This ratio helps to discharge

firms short term liabilities.

RATIO ANALYSIS


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2009 2008

GROSS

PROFIT RATIO

5.77 10.97

NET PROFIT

RATIO

5.72 9.34

Analysis: Gross profit indicates the efficiency of production

department as it is one of the profitability ratios. If the ratio is high

then its a good indicator. Here we can see that there is decrease inthe gross profit ratios. Whereas Net profit ratio shows the overall

efficiency of business. Higher the ratio its good for the business.

Here we can see there is decrease in the ratio in the comparison of

last year.

2009 2008


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2009 2008

INVENTORY

TURNOVER

RATIO

30.46 22.93

ANALYSIS: It is a ratio which shows relationship between cost of

goods sold and avg. stock. If this ratio is high i.e. concern is able toyield high sales with low stock then marketing efficiency will be

considered good and if

its low then its a indication of slowdown of business or over-

investment in stock.


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THANKYOU

marutisuzuki financial analysis

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