Hyundai India Q2 Results: Net Profit, Revenue Show Declines Amid Sales Slump

Hyundai Motor India Ltd. has disappointed with its maiden quarterly results as lacklustre sales weighed on key financials. 

Standalone net profit of the Creta maker fell 16% over the year-ago period to Rs 1,338 crore in the quarter ended 30 September 2024, on the back of revenue that fell 8.3% year-on-year to Rs 16,876 crore, according to an exchange filing on Tuesday.

• Revenue down 8.3% at Rs 16,876 crore vs Rs 18,409 crore

• EBITDA down 11% at Rs 2,138 crore vs Rs 2,400 crore

• EBITDA margin down 30 basis points at 12.7% vs 13%

• Net profit down 16% at Rs 1,338 crore vs Rs 1,602 crore

One basis point is one-hundredth of a percentage point.

On a consolidated basis, the topline decreased 7.50% year-on-year to Rs 17,260.38 crore even as the bottomline fell 15.53% to Rs 1,375.46 crore. The operational profitability margin—measured as the earnings before income, tax, depreciation and amortisation—stood at 12.78% as against 13.08% a year ago.

The performance came on the back of muted demand for hatchbacks and SUVs—an industry-wide phenomenon.

In July-September, Hyundai India dispatched 1,49,639 units to dealerships, as against 1,58,772 units in the year-ago period, showing a decline of 5.75%, according to data sourced from industry body Society of Indian Automobile Manufacturers.

• Revenue down 1.9% at Rs 34,604.6 crore

• EBITDA up 2.4% at Rs 4,545.6 crore

• EBITDA margin up 50 bps at 13.1%

• Net profit down 3.1% at Rs Rs 2,865.1 crore

In the first half of the fiscal, sales fell 2.59% year-on-year to 2,99,094 units. SUVs, led by the Creta, made up 68% of overall sales as against 61% in the year-ago period. The average selling price of an Hyundai car stood at Rs 7.67 lakh as on 30 September. “Despite the sluggish market conditions, we have successfully maintained profitability in H1 FY25, largely due to our proactive and continuous cost control measures,” Unsoo Kim, managing director at Hyundai Motor India, said in a statement accompanying the earnings. “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.”

Hyundai India, just last month, launched the country’s largest initial public offering to a lacklustre listing. Retail investors had bought only about half the portion reserved for them in the IPO.

The Seoul-listed parent has had a lacklustre quarter itself.

On Oct. 24, Hyundai Motor Co. Ltd. reported third-quarter profit that fell short of analysts’ estimates as tepid vehicle sales around the globe and expanded geopolitical risks eroded earnings.

Operating profit was 3.58 trillion won ($2.6 billion) for the three months to September, down 6.5% from a year earlier. That missed the 3.9 trillion won estimated by analysts. Sales rose 4.7% to 42.9 trillion won during the same period. The decline in earnings reflected a one-off expense of about 320 billion won related to preemptive warranty extensions.

On Tuesday, Hyundai India shares fell 0.98% to Rs 1,804.45 apiece on the BSE even as the benchmark index Sensex ended the day 1.03% lower at 78,675.18 points.