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Financial Plan of Maruti Suzuki

Maruti Suzuki's financial plan aims to increase sales volume and net sales through launching new models and variants to compete in the compact car segment despite rising costs from increased excise duty, salaries, steel and fuel prices. The plan expects higher earnings from favorable exchange rates and GDP-driven demand growth. However, it faces risks from euro depreciation, inflation, further fuel price hikes and competition. Maruti is well positioned with a strong balance sheet and reserves to invest in new facilities while reducing costs through natural gas and economies of scale.

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25 views

Financial Plan of Maruti Suzuki

Maruti Suzuki's financial plan aims to increase sales volume and net sales through launching new models and variants to compete in the compact car segment despite rising costs from increased excise duty, salaries, steel and fuel prices. The plan expects higher earnings from favorable exchange rates and GDP-driven demand growth. However, it faces risks from euro depreciation, inflation, further fuel price hikes and competition. Maruti is well positioned with a strong balance sheet and reserves to invest in new facilities while reducing costs through natural gas and economies of scale.

Uploaded by

khushboo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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FINANCIAL PLAN OF MARUTI SUZUKI

PRESENTED BY:-

SUMIT GOEL
SUMIT MADHWANI
• COMANY-AT-GALANCE-08-09.pdf
SHARE HOLDING PATTERN
Financial Highlights Q3 &
Growth over Q3 Fy’09

• Sales Volume 258,026 Veh. 48.7%


• Net Sales 73,338 Mn62.5%
• Op. EBIDTA 11,339 Mn282.1%
• PBT 10,140 Mn246.7%
• PAT 6,875 Mn221.9%
Financial Analysis Q3
Fy’10 Vs Q3 Fy’09
INCOME
• Increase in Volumes (including export) by
48.7%
• Net Sales up by 62.5%
• Higher product mix –Average realization
up by 10.3%.
• Other income higher last year (interest on
income tax refund)
IMPACT OF BUDGET ON
AUTOMOBILE INDUSTRY
• Increase in excise duty will have a little impact on cost.
• Increase in net disposable income is favorable.
• INCREASE IN WIEGHTED DEDUCTION OF IN-HOUSE R&D.
• INCREASE IN WIEGHTED DEUCTION OF PAYMENT TO VARIOUS
INSTITUTES.
FINANCIAL PLAN
As we are assuming the
new car launch.
Have to increase the price.
• More competition in compact car segment.
• Maruti have to come up with the new variants of models to compete.
•
Increasing in cost due to
• Rise in excise duty by 2% in budget 2010-2011.
• Post-recession Hike in salaries.
• Rise in steel prices.
• Rise in petrol prices.
• Increase in emission regulation cost.
Sources for the funds
• As the maruti’s debt position is very
sound they can take the loan for future
expansion.
• Plan to invest 17000 cr. In new facility
in manesar.
• As maruti is setting on the huge
reserves and surplus, the company is
well prepared to beat the inflation.
• BALANCE-SHEET-08-09.pdf
Reduction in cost
• Transfering existing manesar plant
on natural gas.
• Economies of scale.
EXPECTED EARNINGS
• FAVORABLE EXCHANGE RATE.
• HIGHER GDP WILL LEAD TO HIGHER DEMAND.
• INDUSTRY IS EXPECTED TO GROW BY 12-13%
FUTURE WORRIES
• RISK OF EURO DEPRECIATION.
• INFLATION
• FURTHER INCREASE IN FUEL PRICES.
• COMPETITION

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