Full Year 2022 Maruti Suzuki India Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : First of all, thank you to Mr. Srivastava and team for quantifying the number of model launches and refreshers this year, gives a very useful direction and stance to about the product interventions. My first question was about the historical seasonality, which we have seen in the June quarter where the volume typically gets from the March quarter. Given that we are sitting with... Rahul Bharti Can you speak louder please. It's not clear.

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : Sure. My question was first on the...

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Yes. Firstly, just a bookkeeping question. What was the Gujarat volumes in this quarter?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Yes, yes, sorry. Now I have -- my second question was, in this quarter, we've seen a sharp jump in other operating income. Is there anything that you would like to highlight here as to -- or is it just volume linked?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : That's related to you maintaining the same ex-showroom price across the country and the GST thing, is that's related to that?

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : My first question is that historically, we have noticed the seasonality in June quarter, where the volume declines from March level. Given that we have a very strong order book, should we expect that usual seasonality should not be there in the June quarter, assuming no incremental impact on the semiconductor supply issue? Rahul Bharti So this time, the determining factor will be semiconductor. Of course, demand exists. So at the moment, demand is good, we'll have to go by supply.

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : Understood. One final clarification on the order book part. You said that current order book is more than 320,000 units. So that's more than 50,000 increase in less than a month's time. So has that -- the underlying demand is significantly accelerated or are production is fast-forward than where it was earlier in this year? Rahul Bharti New Baleno also.

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : So first question is with regard to your standing on CAFE for FY '22. What's the number you're able to achieve on 0 to 1? And what's the -- if you can give us some color in terms of how does CNG helps you versus gasoline or the other motor fuels to reach this goal? Rahul Bharti It was not very clear, but if I got you right, so Maruti is best positioned among all car manufacturers on CO2 as measured by the CAFE Norm. We have the least CO2 in the weighted average number for our entire fleet, and we hope to keep our leadership there. On your question on CNG, it helps us give about a 20% to 25% benefit in CO2 with respect to gasoline.

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Second question is regarding... Rahul Bharti Sorry, I'd like to clarify. We have to keep in mind that after BS VI, the measurement of CO2 has become more stringent. So the CO2 numbers with the BS VI methodology and the BS IV methodologies will -- are not comparable.

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Sure. Second is with regard to the CapEx side. You have -- you've already done this year, FY '22, a big number. I think it's because of the new land acquisition and you're guiding for the, again, a lumpy number. Would you also give in terms of where this is going to be spent? And incrementally, where is it going into, if we have to look at the 2 years back, and where are you spending and directionally where it will take you? Second, related to the same is, you have won under the component PLI. What is the effort there? What is the CapEx commitment towards the same? And how it will strengthen Maruti over next 3 to 4 years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2022 / 11:15AM, MRTI.NS - Full Year 2022 Maruti Suzuki India Ltd Earnings Call Rahul Bharti So I'll take the PLI question first. So we had applied along with our contract sister company, SMG in the auto scheme, and we had applied in the auto component scheme also, both -- so SMG, EV scheme and the component scheme both have been approved. So the government has a threshold of investment for every year. We will be meeting that requirement. In fact, if you go by the recent announcement, our total investment will be about INR 10,000 crores on the EV and its battery. So that we will be going ahead with.

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : So you are only unique in terms of doing the component spend, right? Compared to other carmakers or automakers. So hence, I wanted to know where is that effort going to be and how your localization can change or the cost of producing them can drastically change over 3, 4 years if you can give some color. Rahul Bharti So components, other manufacturers have also applied for components also. There's a long list of components where you can call AAT, automotive -- advanced automotive technology. So we can club more technologies. So we had applied for CNG.