Hyundai Motor India Q2 Results: Auto Giant Reports Decline In Net Profit & Revenue; Shares In Focus

Hyundai Motor India Ltd, which recently completed India's largest IPO to date, released its September quarter financial results on Tuesday, November 12. The South Korean auto giant's Indian arm reported a notable decline in profits, revenue, and EBITDA.

Hyundai Motor India Ltd (HMIL) reported a dip in its Q2FY25 financial performance, marking its first earnings release since its recent listing on the Indian stock exchanges. The company announced a consolidated net profit drop of 16% year-on-year (YoY) to Rs 1,375.47 crore for the quarter ending September, down from Rs 1,628.46 crore in the same period last year. This decline is attributed to weak market sentiments and ongoing geopolitical tensions impacting the automotive sector.

Revenue from operations also declined, falling 7.5% YoY to Rs 17,260.38 crore compared to Rs 18,659.69 crore in Q2 FY24. Hyundai's domestic passenger vehicle sales saw a decline, with total units sold amounting to 1,91,939 during the July-September period. Domestic sales were down by 5.75% YoY to 1,49,639 units, while exports recorded a volume of 42,300 units.

Unsoo Kim, Managing Director of Hyundai Motor India, emphasized the company's ongoing efforts to stabilize profitability despite a challenging environment. "Despite the sluggish market conditions, we have successfully maintained profitability in H1 FY25, largely due to our proactive and continuous cost control measures," Kim said.

At the operating level, Hyundai's earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 10% to Rs 2,205 crore in Q2FY25, down from Rs 2,441 crore in the same quarter last fiscal. The company's EBITDA margin also contracted slightly, standing at 12.8%, compared to 13.1% in Q2FY24. Despite this decline, Hyundai remains focused on sustaining long-term growth by balancing volume, market share, and margins.

Amid these financial results, Hyundai is positioning itself for growth in the electric vehicle (EV) segment with its highly anticipated CRETA EV, which is expected to launch soon. Kim expressed optimism about the CRETA EV's potential, calling it a "game changer" that could give Hyundai a strong foothold in the competitive Indian EV market.

As of 3 pm on Tuesday, Hyundai Motor India's shares reflected the mixed market response to its earnings report, trading 2% lower at Rs 1,786 on the NSE.

Looking ahead, Hyundai Motor India expects a gradual recovery in market demand and aims to maintain growth quality by optimizing volume, market share, and profitability.