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Maruti Suzuki Q4 FY21 and FY21 Results | Yadnya Investment Academy

Maruti Suzuki Q4 FY21 and FY21 Results | Yadnya Investment Academy

Published on 27 April 2021 Views 108 Comments 0

Q4-FY21 results:

  • The sales volumes for Q4FY21 stood at 4,92,235 vehicles, which was up 27.8% QoQ and down (0.7)% compared to the previous quarter.
  • Net sales increased to Rs. 22958.6 Cr. by 33.6% as compared to Rs. 18,198 Cr. in Q4FY20 and up 3.2% when compared to the previous quarter.
  • Higher revenue growth compared to volume growth could be explained by the price increases carried out by Maruti Suzuki across its models.
  • EBITDA margin for the company was 8.5% which was low as compared to Q4FY20 margins of 12.8%. The main reason being the increase in commodity prices.
  • Operating EBIT for Q4FY21 stood at Rs. 1,250.1 Cr. which was up 72.8% QoQ. This sharp increase comes as the company took various cost reduction efforts in the quarter. This was also followed by lower sales promotion expenses.
  • The operating EBIT when compared to last quarter was down (15.8%) due to unfavorable commodity prices in Q4FY21.
  • Higher volumes and improved prices also contributed to increasing operating EBIT which helped to reduce the impact of rising commodity prices.
  • The net profit for the company in Q4FY21 was Rs. 1,166.1 Cr. lower by (9.7)% when compared to Rs. 1291.7 Cr from Q4FY20 due to factors such as the increase in commodity prices and a lower non-operating income due to mark to market losses on invested surplus funds.
  • PAT margin was down at (5.1)% when compared to (7.5)% from the same quarter last year.
  • Overall, the rise in net sales was offset by higher commodity prices and lower non-operating income ( due to mark-to-market losses) which led to a decline in profit when compared to Q4FY20.

Sales Volume in Q4FY20:

  •    The sales volume stood at 4,92,235 in which 4,56,707 vehicles were sold in the domestic market and 35,528 formed export numbers. Domestic and export sales were up 26.7% and 44.8% respectively.

FY21 results:

  • The sales volume for FY21 stood at 14,57,861. Volumes were down by 6.7% as compared to FY20 due to COVID-led disruptions in the country.
  • Net sales stood at Rs. 66562.1 Cr. which were down by (7.2)% when compared to net sales of Rs. 3776.9 Cr. in FY20.
  • Net profit stood at Rs. 4229.7 Cr. which reduced by (25.1)% when compared to Rs. 5650.6 Cr.
  • The sales volumes were affected due to the period of lockdown in FY21. Other factors which led to a decline in profitability are adverse commodity prices, foreign exchange movement impact, a lower non-operating income due to M-T-M loss.
  • The steps were taken by a company such as an increase in prices of the models, cost reduction, and lowering the operating expenses reduced the impact on operating numbers.

Sales Volume in FY21:

  • The company sold 13,61,722 vehicles in domestic markets which contributed 93.4% to sales volumes and vehicles sold in the overseas markets stood at 96,139 which formed 6.6% of total volumes. Both markets had a significant decline in volumes which led to a total decline of 6.7% as compared to last fiscal.
  • All segments in passenger vehicles showed a decline in volume numbers.
  • Segments such as LCV and Compact (sold to other OEMs) showed improved numbers but could not improve the total volume as these segments collectively formed only 5% of domestic market volume.

Dividend:

  • The Board of Directors of the company has recommended a dividend of Rs. 45/share.
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