Maruti Suzuki Q4 FY21 and FY21 Results | Yadnya Investment Academy
Published on 27 April 2021
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.
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.
The Board of Directors of the company has recommended a dividend of Rs. 45/share.
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