How has been the historical performance of Maruti Suzuki?

Revenue and Profit Growth

Maruti Suzuki’s net sales have shown a consistent upward trend, rising from ₹86,068.5 crores in March 2019 to an impressive ₹1,52,913 crores by March 2025. This growth reflects the company’s strong market presence and expanding product portfolio. Despite a dip in sales during the pandemic-affected years 2020 and 2021, the company rebounded sharply, with sales increasing by over 20% between March 2022 and March 2025.

Operating profit margins have also improved steadily, with the operating profit margin excluding other income rising from 13.25% in 2019 to 13.89% in 2025. The operating profit (PBDIT) excluding other income surged from ₹11,003.2 crores in 2019 to ₹20,156.3 crores in 2025, underscoring enhanced operational efficiency. Including other income, operating profit reached ₹25,178.5 crores in 2025, up from ₹13,564.8 crores in 2019.

Profit after tax (PAT) followed a similar trajectory, climbing from ₹7,494.9 crores in 2019 to ₹14,256.3 crores in 2025. The PAT margin has remained relatively stable, hovering around 10% in recent years, indicating consistent profitability despite market fluctuations.

Balance Sheet and Asset Base

The company’s total assets have expanded significantly, from ₹63,627.7 crores in 2020 to ₹1,31,971.2 crores in 2025. This growth is supported by a substantial increase in non-current assets, particularly in gross block and capital work in progress, reflecting ongoing investments in capacity and technology. Net block rose from ₹15,126.3 crores in 2020 to ₹32,386.7 crores in 2025, while capital work in progress more than quintupled over the same period.

Shareholders’ funds have also strengthened, increasing from ₹49,413 crores in 2020 to ₹96,239.9 crores in 2025. The company has maintained a debt-free status in recent years, with total debt reducing to zero by March 2025, enhancing its financial stability and flexibility.

Book value per share has appreciated markedly, from ₹1,636.19 in 2020 to ₹3,061.07 in 2025, signalling growing intrinsic value for shareholders.

Cash Flow and Liquidity

Maruti Suzuki’s cash flow from operating activities has shown a strong upward trend, rising from ₹3,495 crores in 2020 to ₹16,136 crores in 2025. This reflects improved cash generation capacity aligned with higher profitability. However, cash flow from investing activities has been consistently negative, indicative of ongoing capital expenditure and strategic investments. Financing activities have also seen net outflows, primarily due to debt repayments and shareholder returns.

Despite these outflows, the company maintained a healthy cash and cash equivalents balance, although it declined to ₹184 crores in 2025 from ₹2,659 crores in 2024, reflecting active deployment of cash resources.

Summary of Historical Performance

Over the six-year period ending March 2025, Maruti Suzuki has demonstrated resilient growth in revenue, profitability, and shareholder equity. The company’s ability to recover from pandemic-related challenges and sustain operating margins above 13% highlights operational strength. Its balance sheet reflects prudent financial management, with a shift towards zero debt and increasing reserves. Earnings per share have nearly doubled from 253.28 in 2019 to 461.2 in 2025, underscoring enhanced shareholder returns.

While capital expenditure and investments have led to negative investing cash flows, these are indicative of the company’s focus on future growth and capacity expansion. The steady increase in net block and capital work in progress supports this outlook. Overall, Maruti Suzuki’s historical performance portrays a well-managed enterprise with strong fundamentals and a clear growth trajectory in the competitive automobile sector.

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