Maruti Suzuki Q4-FY22 Results Update

On 29th April 2022, Maruti Suzuki announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- Maruti Suzuki sold a total of 488,830 vehicles during Q4FY22, lower by 0.7% compared to the same period the previous year. 

- In the Quarter, the sales in the domestic market stood at 420,376 units, a decline of 8% over that in Q4FY21. 

- The sales in the export market were at 68,454 units which is the highest ever in any Quarter. During Q4FY22, the Company registered Net Sales of Rs.255,140 million, an increase of 11.1% compared to the same period of the previous year. 

- The prices of commodities such as steel, aluminum, and precious metals witnessed an unprecedented increase during this year. Maruti Suzuki was forced to increase the prices of vehicles to partially offset this impact.

- Maruti Suzuki continued to work on cost reduction efforts to minimize the impact on customers. With this, the operating profit for the quarter stood at Rs.17,796 million, a growth of 42.4% over that of Q4FY21.

- Net profit for Q4FY22 at s.18,389 million, higher by 57.7% compared to the same period last year

FY2022:

- Maruti Suzuki sold a total of 1,652,653 vehicles during the year, up 13.4% over the previous year. 

- The sales in the domestic market stood at 1,414,277 units, an increase of 3.9% over FY21. 

- Maruti Suzuki recorded its highest ever exports of 238,376 units in FY22 compared to 96,139 units in FY21. This was also about 62% higher than the peak exports in any financial year so far. 

- During the period, the Company registered Net Sales of Rs.837,981 million compared to Rs.665,621 million in FY21.

- Despite a 26% increase in Net Sales, the Net Profit for the period declined by 11% over the previous year to Rs.37,663 million. 

Production during the year FY22 was impacted by the shortage of electronic components for an estimated 270,000 vehicles, mostly domestic models, because of which there were pending customer bookings of about 268,000 vehicles at the end of the year. In addition, the first quarter witnessed a disruption owing to the second Covid wave.

Key reasons for margin movement in Q4FY22 vs Q4FY21:

Positive factors:

- Cost reduction efforts 

- Lower sales promotion expenses and increase in selling prices 

- Higher non-operating income 

Negative factors:

- Adverse commodity prices

Key reasons for margin movement in Q4FY22 vs Q3FY22:

Positive factors:

- Relatively better sales volume leading to improved capacity utilization 

- Lower sales promotion expenses and increase in selling prices 

- Higher non-operating income

Negative factors:

- Adverse commodity prices 

- Higher advertisement expenses

Though the profit in FY 2021-22 was lower, the Board of Directors recommended a dividend of Rs.60 per share with a face value of Rs.5 per share compared to Rs.45 per share in FY21.

On Monday, the share price of Maruti Suzuki was down by 0.49%.