A Report on
Analyzing the Different Ratios
Of
Financial & Management Accounting
By-
Abhijeet Shah (240005)
Abhishek Kumar (240093)
Akansha Arora (240022)
Anjali Singh (240034)
Ritika Kumawat (240105)
Shantanu Roy (240182)
Div-I MBA (2024-2026)
School of Management
Submitted to-
Prof. Ankur Shukla
Maruti Suzuki
Company Overview
Maruti Suzuki, a subsidiary of Suzuki Motor Corporation, Japan, is the leading
automobile manufacturer in India. Maruti Suzuki was founded in 1981 and has
transformed the Indian auto industry by providing dependable, reasonably
priced, and fuel-efficient vehicles. With its main office located in New Delhi,
Maruti Suzuki is renowned for producing automobiles that satisfy the wide
range of demands of Indian customers, from high-end sedans and SUVs to
entry-level hatchbacks.
Product Portfolio
Maruti Suzuki offers a wide range of vehicles across different segments:
Hatchbacks: Alto, WagonR, Swift, Baleno
Sedans: Dzire, Ciaz
SUVs: Vitara Brezza, Ertiga, Grand Vitara
Electric Vehicles (EV): Maruti is actively developing its EV lineup, keeping
pace with global trends towards electric mobility.
Business Operations
Across India, Suzuki Motor Company runs a huge network of dealerships,
manufacturing plants, and service facilities. Its two principal manufacturing
facilities are situated in the Haryana cities of Gurgaon and Manesar. The
corporation works on car design, development, and manufacture, among other
automotive-related projects. Maruti Suzuki makes a major contribution to
India's car exports by concentrating on selling automobiles to foreign markets.
Financial Position
Due to its steady development in sales and profits, Suzuki Motor Company
can sustain a healthy financial status. As of current estimates, the company
enjoys constant revenues and is listed on Indian stock exchanges. Its best-selling
models, including as the Swift, Baleno, and WagonR, contribute significantly to
its profits. Maruti Suzuki's cost-effective operations and size have allowed it to
retain good profit margins despite volatility in the car industry caused by
external factors like inflation and disruptions to the global supply chain.
Marketing Strategies
Economical, dependable, and cost-effectiveness are the main focuses of
Suzuki's marketing approach. Target customers for the company include young
professionals, families, and first-time automobile buyers. Traditional and digital
marketing channels are used to attract this demographic.
Future Objectives
By increasing the number of EVs it offers, raising safety standards, and looking
into international export markets, Maruti Suzuki hopes to further solidify its
position as the industry leader in India. It also prioritizes equipping its
automobiles with cutting-edge technologies like autonomous driving and
connected cars.
Maruti Suzuki continues to be a reliable brand and a major influence in
determining the direction of Indian transportation thanks to its rich history and
ongoing innovation.
Maruti Suzuki has shown strong financial growth over the past year, with
key metrics reflecting solid performance.
Revenue Growth:
Revenue from Operations reached ₹1,34,921.7 Cr in March 2024, up from
₹1,12,511.3 Cr the previous year, showcasing robust sales momentum. Total
Revenue also rose to ₹1,45,951.7 Cr.
Rising Costs:
While costs increased, with the Cost of Materials Consumed growing to
₹78,915.3 Cr, the company effectively managed expenses, leading to a rise in
overall profitability.
Profit Surge:
Profit Before Tax nearly doubled to ₹17,170.4 Cr, while Net Profit After Tax
surged to ₹13,234.1 Cr, demonstrating Maruti’s ability to convert revenue into
substantial profits.
Improved Margins:
Gross Profit Margin improved to 26%, Operating Profit Margin to 45%, and Net
Income Margin to 9%, indicating better operational efficiency and profitability.
Shareholder Value:
Earnings Per Share (EPS) jumped from ₹272 to ₹429, providing higher returns
for shareholders.
Conclusion:
Maruti Suzuki achieved strong revenue growth, improved margins, and
significant profit increases, delivering solid returns to shareholders while
maintaining cost control.
Maruti Suzuki’s Consolidated Balance Sheet (2020-2024): Key
Insights
1. Shareholders’ Funds: Share Capital remained stable with a slight rise to ₹157.2 Cr
in 2024. Reserves and Surplus saw significant growth from ₹49,262 Cr in 2020 to
₹85,478.80 Cr in 2024, leading to a strong rise in Total Shareholders’ Funds to
₹85,636 Cr, reflecting increased profitability.
2. Non-Current Liabilities: Maruti eliminated Long-Term Borrowings by 2022,
showcasing financial strength. Deferred Tax Liabilities dropped to ₹388.8 Cr by
2024. Other Long-Term Liabilities grew to ₹3,229.40 Cr, while Long-Term
Provisions increased to ₹144.8 Cr.
3. Current Liabilities: Short-Term Borrowings dropped sharply to ₹33.1 Cr in 2024,
and Trade Payables grew to ₹16,988.40 Cr, indicating higher business activity. Total
Current Liabilities nearly doubled to ₹25,951.80 Cr.
4. Asset Growth: The company significantly invested in Tangible Assets, which grew
to ₹27,411.10 Cr by 2024. Non-Current Investments rose to ₹53,383.80 Cr, and
Total Non-Current Assets increased to ₹92,717 Cr, reflecting long-term growth plans.
5. Current Assets: Cash and Cash Equivalents surged to ₹2,827.40 Cr in 2024,
indicating better liquidity. Total Current Assets grew from ₹8,440.60 Cr in 2020 to
₹22,633.80 Cr in 2024, showing improved short-term asset management.
6. Investment Strategy: Non-Current Investments saw significant gains, with Quoted
Market Value rising to ₹2,151.50 Cr and Unquoted Book Value increasing to
₹55,424.60 Cr by 2024.
Conclusion:
Maruti Suzuki’s balance sheet reflects solid financial health, with steady growth in equity,
assets, and investments. The elimination of long-term debt and improved liquidity highlight
sound financial management, positioning the company for continued success.
Ratio Analysis
