Maruti Suzuki India Ltd 532500
Q4 2013 Earnings Call Transcript

Transcript Call Date 04/26/2013

Ambrish Mishra - JM Financials: Thanks a lot Marina. Good afternoon, everyone. On behalf of JM Financial Institutional Securities Private Limited, I welcome you all to the Fourth Results Conference Call of Maruti Suzuki India Ltd. I also take this opportunity to welcome the management team from Maruti Suzuki today.

Without wasting much time, I would now like to invite Mr. (Nikhil Vyas) who will take it from here. Over to you, Nikhil.

Nikhil Vyas: Thank you, Ambrish. Ladies and gentlemen, good afternoon once again. May I introduce you to the management team from Maruti Suzuki? Today we have with us our Chief Operating Officer, Supply Chain, Mr. S Maitra; Chief Operating Officer, Marketing and Sales, Mr. Mayank Pareek.

Mayank Pareek - MEO, Marketing & Sales: Good afternoon.

Nikhil Vyas: From finance, we have our CFO, Mr. Ajay Seth.

Ajay Seth - CFO: Good afternoon.

Nikhil Vyas: Vice President, Mr. (Pradeep Garg).

Pradeep Garg - VP: Good afternoon.

Nikhil Vyas: And Mr. (Diggy Goel), and other team members from the finance. From corporate, we have General Manager, Corporate and Government Affairs, Mr. (Rahul Bharti).

Rahul Bharti - GM, Corporate and Government Affairs: Hi.

Nikhil Vyas: The conference call will begin with a brief statement of the performance and outlook of our business by Mr. Seth. Afterwards, we will be happy to receive your questions. May I remind you of the Safe Harbor? We may be making some forward-looking statements. They have to be understood in conjunction with the uncertainty and the risk that the Company faces. And I may also like to inform you that the call is being recorded and the transcript will be

available at our website.

I would now like to invite our CFO, Mr. Seth. Over to you, sir.

Ajay Seth - CFO: Thank you, Nikhil. Good afternoon, ladies and gentlemen. Welcome once again to Maruti Suzuki and thanks for your interest in our annual financial results. You would be aware that the year 2012-13 was a challenging year for the passenger vehicle industry on account of weak economic growth and weak consumer sentiment. The domestic passenger vehicle industry grew by 2.2% in unit sales in 2012-13.

Maruti Suzuki was able to achieve a growth of 4.4% and improved market share by about 1% to 39.5%. This growth was led by the popularity of our new and refreshed model launches and better availability of diesel engines during the year. The market distortion between petrol and diesel vehicles continued for the most part in 2012-13.

The share of diesel vehicles in total percentage of vehicle sales increased from 48% in 2011-12 to 58% in 2012-13. Petrol vehicle sales continued to decline for the second successive year. In contrast to the rest of the market, utility vehicles posted a robust growth of 52% and the share of this segment increased to 21% of the percentage of vehicle market. A part of this growth was contributed by the Company's new utility vehicle, Ertiga, launched in April 2012.

The small car segment of industry was hit the most by inflation, low income growth and high interest rates. Industry sales in this segment declined by 13% in the year. We would like to share that this is not a case of customers shifting to bigger cars; it is just that the small car customer is buying less and the big car customer is buying more. Indian customers rated us number one in customer satisfaction for the 13th consecutive year in the J.D. Power Asia Pacific Survey.

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