Hyundai Motor India Q2 Results: Net profit falls 16%, revenue and margin narrow from last year

Hyundai Motor India Ltd., India's largest IPO on record and a recent listing, reported its September quarter results on Tuesday, November 12, which were lower on a year-on-year basis on all parameters.

The South Korean automaker's India unit reported a 16% drop in its overall net profit to ₹1,375 crore for the September quarter. It had reported a net profit of ₹1,628 crore during the same period last year.

Revenue for the quarter also declined by 8% to ₹17,260 crore compared to ₹18,660 crore last year.

Hyundai Motor India's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 10% to ₹2,205, while margin narrowed by 30 basis points on a year-on-year basis to 12.8% from 13.1% in the year-ago quarter.

In its post-earnings release, Hyundai said that it sold a total of 1,91,939 units of Passenger Vehicles during the July-September quarter, which included 1,49,638 units in the domestic market, led by a strong contribution from the SUV segment.

Hyundai further said that it expects sustained demand momentum for the industry.

"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 mass market in the coming months and we expect it will be a game changer in the EV market," Managing Director Unsoo Kim said.

Shares of Hyundai Motor India have slumped to the lowest point of the day post the earnings announcement. The stock is trading 2.5 lower at ₹1,777. The stock is down 9% below its issue price of ₹1,960 per share.