Hyundai India Q2 Results: PAT Down 16% To Rs 1,375 Crore, Revenue Falls 7%

In addition to the drop in profit, revenue from operations for the period also saw a year-on-year (YoY) decrease of 7 per cent, totalling Rs 17,260 crore

Hyundai Motor India, which made its market debut recently, announced a 16 per cent decline in its consolidated net profit for the quarter ended September 2024. The company reported a profit of Rs 1,375 crore, compared to Rs 1,628 crore in the same quarter last year. In addition to the drop in profit, revenue from operations for the period also saw a year-on-year (YoY) decrease of 7 per cent, totalling Rs 17,260 crore. The company’s stock has reacted negatively to the results, trading 2.50 per cent lower in the market.

The company reported an EBITDA of Rs 2,205 crore for the second quarter, marking a 10 per cent decline compared to Rs 2,440 crore in the same period last year. Operating margins also fell by 30 basis points year-on-year, reaching 12.8 per cent during the quarter.

Hyundai India attributed the drop in profit after tax (PAT) to weak market sentiment and geopolitical uncertainties. In the second quarter, the company sold a total of 191,000 units, with 149,000 units sold in the domestic market, driven by strong demand in the SUV segment. Export sales totalled 42,300 units.

Looking ahead, Hyundai expects sustained demand in the industry over the mid-to-long term and will focus on fostering quality growth by striking a balanced approach between volume, market share, and margins.

For the first half of the current fiscal year, the company reported a 2 per cent YoY decline in revenue, which stood at Rs 34,605 crore, while profit for the period dropped to Rs 2,865 crore.

“Despite the sluggish market conditions, we have successfully maintained profitability in H1FY25, largely due to our proactive and continuous cost control measures," said Unsoo Kim, Managing Director, Hyundai India.

Total sales for the year's first half reached 383,000 units, with domestic sales accounting for 299,000 units. Hyundai also announced plans to launch the CRETA EV for the mass market soon, expecting it to be a game changer in the electric vehicle segment.