Hyundai Motor India Ltd (HMIL), which recently made its debut on the stock market, released its September quarter earnings report today, posting decline in its both top and bottom line growth. Reacting to Q2 numbers, shares of Hyundai Motor India declined as much as 2.7% to ₹1,772.45 apiece on the BSE.
The auto major has posted a 16% drop in its consolidated net profit to ₹1,375 crore for the second quarter ended September 30, 2024, dented by lower domestic sales and exports. The South Korean carmaker had reported consolidated net profit of ₹1,628 crore in the corresponding period last year.
For Q2 FY25, consolidated revenue from operations declined 7.5% to ₹17,260 crore as compared to ₹18,660 crore in the same period last year.
On the operating front, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) slide by 10% to ₹2,205, while margin narrowed by 30 basis points to 12.8% from 13.1% in the same period last fiscal.
During the quarter under review, HMIL's domestic sales were down 5.75% to 1,49,639 units versus 1,58,772 units in the year ago period.
In the first half of the year, the company sold a total of 3,83,994 units of passenger vehicles, including 2,99,094 units in the domestic market with a strong contribution from the SUV segment. The export volume stood at 84,900 units.
For H1 FY25, the company registered revenue from operations of ₹34,604.62 crore, a decrease of 1.92% against ₹35,283.20 crore in the corresponding period of the previous year. The Net profit for the period was at ₹2,865.12 crore compared to ₹2,957.65 crore of H1 FY24.
“Despite the sluggish market conditions, we have successfully maintained profitability in H1 FY 2024-25, largely due to our proactive and continuous cost control measures. Further, we will be launching the CRETA EV for the mass market in the coming months and we expect it will be a game changer in the EV market,” says Unsoo Kim, Managing Director.
Going ahead, the company expects a sustained demand momentum in the industry in the mid to long term. It plans to focus on quality of growth by maintaining an optimum balance between volume, market share and margins.
