Hyundai Motor India Q2 Results: Net Profit and Revenue Decline Amid Market Challenges
Hyundai Motor India has released its financial results for the second quarter of FY25, reporting a decline in both net profit and revenue. This marks Hyundai’s first earnings report since its recent listing on the Indian stock exchanges, reflecting the effects of challenging market conditions on its financial performance.
Hyundai Q2FY25 Net Profit Drops by 16%
In Q2 FY25, Hyundai Motor India’s consolidated net profit fell by 16% to ₹1,375.47 crore, down from ₹1,628.46 crore in the same quarter the previous year. The company attributed this decline primarily to weak market sentiments and geopolitical factors, which created headwinds for the automotive industry.
Revenue from Operations Sees 8% YoY Decline
The company’s revenue from operations also decreased, falling 8% year-on-year to ₹17,260.38 crore. This represents a decline from ₹18,659.69 crore in Q2 FY24. Hyundai’s performance highlights the broader challenges faced by the automotive sector in India, including fluctuating demand and macroeconomic uncertainties.
Sales Performance: Domestic and Export Volumes
Hyundai Motor India sold a total of 1,91,939 passenger vehicles during the July-September quarter. However, domestic sales fell by 5.75% year-on-year, amounting to 1,49,639 units. Despite the dip in the domestic market, Hyundai maintained a solid export volume of 42,300 units, demonstrating the company’s resilience and strong global reach.
Profitability Maintained Amid Market Pressures
Unsoo Kim, Managing Director of Hyundai Motor India, emphasized the company’s focus on profitability despite the sluggish market. “Despite challenging conditions, we successfully maintained profitability in H1 FY25 due to our proactive and continuous cost control measures,” Kim stated. Hyundai also announced plans to launch the CRETA EV in the coming months, targeting mass-market EV adoption, which they believe could be transformative for the Indian EV segment.
Operating Performance: EBITDA Decline
Hyundai’s earnings before interest, tax, depreciation, and amortization (EBITDA) also took a hit, dropping 10% to ₹2,205 crore from ₹2,441 crore in the prior year’s quarter. The EBITDA margin narrowed slightly, decreasing from 13.1% to 12.8%. This reduction reflects the company’s challenges in balancing growth with cost management in a highly competitive market.
Looking Forward: Strategic Focus on Balanced Growth
In a release, Hyundai Motor India conveyed optimism for sustained demand in the long term, signaling plans to focus on balanced growth. The company aims to maintain a healthy equilibrium between volume, market share, and profitability, positioning itself for steady advancement in a dynamic industry environment.
