HORIZONTAL & VERTICAL ANALYSIS OF

MARUTI SUZUKI INDIA LTD.

SUBMITTED BY: SUBMITTED TO:

JAYESH GAUR (BM-019113) DR. NEERAJ SANGHI
PRANAV SHAHI BISEN (BM-019123)
RENUA DEVI (BM-019133)
SAKSHI SACHDEVA (BM-019143)
SEJAL CHAUDHARY (BM-019153)
SHUBHAM SINGHAL (BM-019163)
Horizontal Analysis
 y-o-y y-o-y
Financial (Rs million) Mar-18 Mar-17
Financial (Rs million) Mar-19 change Mar-18 change (%)
(%)
Net sales 787,830 17% 672,123
Net sales 840,597 7% 787,830
Other operating income 11,179 47% 7,605
Other operating income 20,048 79% 11,179
Total Operating Revenue 799,009 18% 679,728
Total Operating Revenue 860,645 8% 799,009
Total cost of sales 679,128 18% 575,711
Total cost of sales 750,511 11% 679,128
Raw material consumed 556,799 18% 471,466
Raw material consumed 607,423 9% 556,799

Power & fuel 9,449 26% 7,508 Power & fuel 7,508 28% 5,845

Labour cost 32,549 15% 28,338 Labour cost 28,338 22% 23,310

Selling & distribution 32,107 30% 24,754 Selling & distribution 24,754 30% 19,014

Other cost 68,983 12% 61,729 Other cost 61,729 10% 56,076

Expenditure capitalised -   - Expenditure capitalised -   -

EBITDA 110,134 -8% 119,881 EBITDA 119,881 15% 104,017
Interest & Finance charges 758 -78% 3,457 Interest & Finance charges 3,457 287% 894
Depreciation 30,189 9% 27,579
Depreciation 27,579 6% 26,021
OPBT 79,187 -11% 88,845
OPBT 88,845 15% 77,102
Non operating income 2,735 59% 1,725
Non operating income 1,725 62% 1,063
Cash/Non-cash adjustment 1,501 48% 1,016
Cash/Non-cash 1,016 -1455% (75)
Extra-ordinary 22,681 22% 18,612 adjustment
Income/(Expenses)
Extra-ordinary 18,612 -13% 21,403
PBT 106,104 -4% 110,198 Income/(Expenses)

Tax 31,098 -6% 32,980 PBT 110,198 11% 99,493

PAT 75,006 -3% 77,218 Tax 32,980 27% 25,991

 y-o-y y-o-y
Financial (Rs million) Mar-16 change (%) Mar-15 Financial (Rs million) Mar-17 change (%) Mar-16

Net sales 567,729 16% 490,730 Net sales 672,123 18% 567,729

Other operating income 7,271 -21% 9,213 Other operating income 7,605 5% 7,271
Total Operating Revenue 575,000 15% 499,943 Total Operating Revenue 679,728 18% 575,000
Total cost of sales 485,810 12% 433,783 Total cost of sales 575,711 19% 485,810
Raw material consumed 391,833 11% 353,902
Raw material consumed 471,466 20% 391,833
Power & fuel 7,663 -7% 8,208
Power & fuel 5,845 -24% 7,663
Labour cost 19,788 23% 16,108
Labour cost 23,310 18% 19,788
Selling & distribution 17,251 25% 13,822
Selling & distribution 19,014 10% 17,251
Other cost 49,275 18% 41,743
Other cost 56,076 14% 49,275
Expenditure capitalised - #DIV/0! -
Expenditure capitalised -   -
EBITDA 89,190 35% 66,160
EBITDA 104,017 17% 89,190
Interest & Finance 815 -60% 2,060
charges Interest & Finance charges 894 10% 815
Depreciation 28,202 14% 24,703
Depreciation 26,021 -8% 28,202
OPBT 60,173 53% 39,397
OPBT 77,102 28% 60,173
Non operating income 1,551 -80% 7,833
Non operating income 1,063 -31% 1,551
Cash/Non-cash 694 67% 416
adjustment Cash/Non-cash adjustment (75) -111% 694
Extra-ordinary 12,019 -1101% (1,201)
Income/(Expenses) Extra-ordinary 21,403 78% 12,019
Income/(Expenses)
PBT 74,437 60% 46,445
PBT 99,493 34% 74,437
Tax 20,794 105% 10,125
Tax 25,991 25% 20,794
PAT 53,643 48% 36,320
PAT 73,502 37% 53,643
 Graphical Analysis And Interpretation
particulars ratio 2019 2018
Raw material consumed 109% 607,423
556,799

Power & fuel 126% 9,449

7,508
Labour cost 115% 32,549
28,338
Interpretation :
Selling & distribution 130% 32,107
In year 2018-19 , the raw material consumed
24,754 is very low as comparison to others and selling
Other cost 112% 68,983 and distribution is very high .
61,729

2018-19 ratio
Raw material consumed

Power & fuel

Labour cost

Selling & distribution

Other cost
 particulars ratio 2018 2017
Interpretation :
Raw material 118% • In year 2017-18 raw material consumed was at
consumed 556,799 471,466
fixed rate , ratio being 118% , this year marked
by an overall increase in sales and hence
Power & fuel 128%
7,508 5,845 rendering the sales and distribution ratio at
Labour cost 122% 130% .
28,338 23,310
• This leads to increase in output as well as
Selling & distribution 130%
24,754 19,014 variable cost which can be seen as increase in
labour cost of 122% and power and fuel of
Other cost 110% 128% . The other cost remains same .
61,729 56,076

2017-18 ratio
Raw material consumed
Power & fuel
Labour cost
Selling & distribution
Other cost
 Interpretation :
particulars
Raw material
ratio
120%
2017 2016 • There was an increase in consumption of raw
consumed 471,466 391,833 material in 2017 as per comparison to 2016 but at
a decreasing rate since in as per comparison in
Power & fuel 76% 2015-16 it was of 125% and this year it is an
5,845 7,663
increase of 120% .
Labour cost 118%
23,310 19,788 • Labour cost also increased at decreasing rate of
Selling & 110% 118% also power & fuel consumption ratio also
distribution 19,014 17,251
increased at detrimental rate of 76%
• The selling and distribution ratio is of 110%
Other cost 114%
56,076 49,275 showing an increase from past cost of same .

Raw material consumed 2016-17 ratio

Power & fuel
Labour cost
Selling & distribution
Other cost
particulars ratio 2016 2015
Raw material 111% 391,833 353,902
consumed

Power & fuel 93%

7,663 8,208
Labour cost 123% Interpretation :
19,788 16,108 • In 2016 , the raw material consumed was 111%
Selling & 125%
distribution 17,251 13,822
of what consumed in 2015 due to the stellar
increase in selling and distribution of 125% .
Other cost 118%
• The increase in percentage of power and fuel
49,275 41,743 and other cost was also due to the same reason.

Raw material consumed

2015-16 ratio
Power & fuel
Labour cost
Selling & distribution
Other cost
Vertical Analysis
 %
Financial (Rs million) Mar-19 Financial (Rs million) Mar-18
%
Net sales 98% 840,597 Net sales 99% 787,830
Other operating income 2% 20,048 Other operating income 11,179
1%
Total Operating Revenue 100% 860,645 Total Operating Revenue 799,009
100%
Total cost of sales 87% 750,511 Total cost of sales 679,128
85%
Raw material consumed 71% 607,423 Raw material consumed 556,799
70%
Power & fuel 1% 9,449 Power & fuel 1% 7,508
Labour cost 4% 32,549 Labour cost 4% 28,338
Selling & distribution 4% 32,107 Selling & distribution 24,754
3%
Other cost 8% 68,983 Other cost 8% 61,729
Expenditure capitalised 0% - Expenditure capitalised -
0%
EBITDA 13% 110,134 EBITDA 15% 119,881
Interest & Finance charges 0% 758 Interest & Finance charges 3,457
0%
Depreciation 4% 30,189 Depreciation 3% 27,579
OPBT 9% 79,187 OPBT 11% 88,845
Non operating income 0% 2,735 Non operating income 1,725

0%
Cash/Non-cash adjustment 0% 1,501 Cash/Non-cash adjustment 1,016
0%
Extra-ordinary 3% 22,681 Extra-ordinary 18,612
Income/(Expenses) Income/(Expenses)
2%
PBT 12% 106,104 PBT 14% 110,198
Tax 4% 31,098 Tax 4% 32,980
PAT 9% 75,006 PAT 10% 77,218
 %
Financial (Rs million) Mar-17 Financial (Rs million) Mar-16 Financial (Rs million) Mar-15
% %
Net sales 99% 672,123 Net sales 99% 567,729 Net sales 490,730
98%
Other operating 7,605 Other operating 1% 7,271 Other operating 9,213
income 1% income income 2%
Total Operating 679,728 Total Operating 100% 575,000 Total Operating 499,943
Revenue 100% Revenue Revenue 100%
Total cost of sales 575,711 Total cost of sales 84% 485,810 Total cost of sales 433,783
85% 87%
Raw material 471,466 Raw material 68% 391,833 Raw material 353,902
consumed consumed consumed 71%
69%
Power & fuel 5,845 Power & fuel 8,208
1% Power & fuel 1% 7,663 2%
Labour cost 23,310 Labour cost 3% 19,788 Labour cost 16,108
3% 3%
Selling & 19,014 Selling & 3% 17,251 Selling & 13,822
distribution 3% distribution distribution 3%
Other cost 8% 56,076 Other cost 9% 49,275 Other cost 41,743
8%
Expenditure - Expenditure 0% - Expenditure -
capitalised 0% capitalised capitalised 0%
EBITDA 15% 104,017 EBITDA 16% 89,190 EBITDA 66,160
13%
Interest & Finance 894 Interest & Finance 0% 815
Interest & Finance 2,060
charges charges
0% charges 0%
Depreciation 4% 26,021 Depreciation 5% 28,202
Depreciation 24,703
OPBT 77,102 OPBT 10% 60,173 5%
11% OPBT 39,397
Non operating 1,063 Non operating 0% 1,551 8%
income income Non operating 7,833
0% income 2%
Cash/Non-cash (75) Cash/Non-cash 0% 694 Cash/Non-cash 416
adjustment 0% adjustment adjustment 0%
Extra-ordinary 21,403 Extra-ordinary 2% 12,019 Extra-ordinary (1,201)
Income/(Expenses) Income/(Expenses) Income/(Expenses) 0%
3%
PBT 46,445
PBT 15% 99,493 PBT 13% 74,437 9%
Tax 25,991 Tax 10,125
4% Tax 4% 20,794 2%
PAT 73,502 PAT 9% 53,643 PAT 36,320
11% 7%
 Graphical Analysis And Interpretation
Interpretation :
• From the graph we can infer that maximum
% of total operating
raw material consumed revenue contribution of raw materials to total operating
revenue was in the years 2015 & 2019.
2015 71% • Raw material % dropped from 2015 to 2016 and then
steadily increased in subsequent years.
2016 68%
• Minimum % was in the year 2016.
2017 69% • There is a subsequent increment of 1% in raw
material during fiscal year 2016-17, 2017-18 , 2018-
2018 70% 19. There is no un-appropriate deviation seen in all
2019 71%
the above fiscal year.

2015; 71% 2019; 71%

2018; 70%

2017; 69%

2016; 68%

Raw Material % of total operating revenue

 % of total operating
labour cost revenue Interpretation :
• From the graph we can infer that maximum
2015 3% contribution of labour cost to total operating revenue
was in the years 2018 & 2019.
2016 3% • Labour cost percentage was stable from 2015 to 2017
and then steadily increased in subsequent years.
2017 3% • The 1% increment of labor cost is shown in 2018 that
continues to 2019 . This change was due to increased
2018 4% output . Hence more variable cost.
2019 4%

2018; 4% 2019; 4%

2015; 3% 2016; 3% 2017; 3%

Labour cost% of total operating revenue

 Interpretation :
• There is a steep drop of 1% in power and fuel
% of total
power&fuel operating revenue consumption in fiscal year 2015-16 as some of the
older machinery has been replaced by new one
2015 2%
which is more power efficient and this ratio is still
2016 1% being maintained till 2019.
2017 1%

2018 1%

2019 1%

Power & Fuel% of total operating revenue

2015; 2%

2017; 1% 2018; 1% 1%
2016; 1%
 Interpretation:
• There is no visible change in the selling and
distribution till 2018 , Maruti Suzuki had entered
% of total
Selling&dist operating revenue in a new strategic deal for distribution and
marketing with Nexa in 2016 .
2015 3%
• The distribution chain enlist different segments
2016 3% of car which are being marketed and serviced by
Nexa only. The change in selling and distribution
2017 3%
in 2019 was due to entrance of different
2018 3% segment car,BS4,BS5 at a cheaper rate there by
2019 4% increasing the sales .

2019; 4%

2015; 3% 2016; 3% 2017; 3%

2018; 3%

Selling & dist% of total operating revenue

 Interpretation :
• In 2015-16, there is a introduction of new
technology and a separate marketing front was
% of total
other cost operating revenue created under the name Nexa this leads to an
increase in fixed cost in terms of technology and
2015 8%
research and development .
2016 9% • The cost was again manifested and distributed
2017 8% among all the further new category automobile
that renders to the consistency in the other cost
2018 8%
change as its seems constant throughout the
2019 8% year from 2017 to 2019.

2016; 9%

2017; 8% 2018; 8%
2015; 8% 2019; 8%

Other cost % of total operating revenue

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