Hyundai Motor India Q2 Results: Net Profit Falls by 16% YoY, Revenue Down by 7.5%

Hyundai Motor India Limited (HMIL) announced its Q2 FY25 financial results for the quarter ended September 30, 2024. The company reported a decline in revenue and profitability, with net profit falling by 16% year-over-year due to lower domestic and export sales. The company's revenue from operations decreased by 7.5% YoY, reflecting challenging market conditions.

Hyundai Motors India Q2 Quick Insights

• Revenue: ₹17,260 crore, down by 7.5% YoY.
• Net Profit: ₹1,375 crore, decreased by 16% compared to last year.
• EBITDA: ₹2,205 crore, down by 10% YoY with a margin of 12.8%.
• Domestic Sales: 1,49,639 units, down by 5.75% YoY, primarily led by strong contributions from the SUV segment.
• Export Volume: 42,300 units.
• Management’s Take: "Despite market challenges, profitability was maintained due to cost control measures. CRETA EV launch is expected to be a game-changer in the EV market."
• Stock Reaction: Shares fell by 2.5% post-results, trading at ₹1,777 on the BSE.

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Hyundai Motors India's Management Commentary

Mr. Unsoo Kim, Managing Director, stated that proactive cost control measures allowed the company to maintain profitability in the first half of FY25. Looking forward, Hyundai Motor India is focused on sustaining demand and growth through a balance of volume, market share, and margins. The anticipated launch of the CRETA EV aims to strengthen the company's position in the electric vehicle market.

Hyundai Motors Share Reaction After Quarter Results

After the announcement of the Q2 FY25 results, Hyundai Motor India’s stock showed a decline. By 2:15 pm on November 12, the share price on the BSE had dropped by 2.2% to ₹1,782 per share. The stock continues to trade below its IPO issue price of ₹1,960, reflecting investor reactions to the weaker financial performance.

About the Hyundai Motors India Ltd.

Hyundai Motor India, the country’s second-largest car manufacturer with a 15% market share, recently went public in October through the largest IPO in India’s history. The upcoming launch of the CRETA EV highlights the company’s focus on expanding its EV offerings amidst growing demand for sustainable mobility solutions. Hyundai, whose 15 per cent market share trails only Maruti Suzuki's 41 per cent, said weak demand in India led to a 6% drop in domestic sales, while exports fell 17 per cent due to disruptions around the Red Sea.