Hyundai India Q2 Results: Hyundai Motor India Limited (HMIL) has declared its business results for the second quarter of the financial year 2024-25 (Q2FY25). During this period, the company’s consolidated net profit has fallen by 16% to Rs 1,375 crore. In the same period last year, the consolidated net profit of the company was Rs 1,628 crore. Hyundai India has mainly attributed this decline to decline in domestic sales, decline in exports and geo-political reasons. However, the company has also said that they have also taken measures to reduce costs in this quarter, which has helped in maintaining profitability. Hyundai India is currently the second largest car manufacturer with 15% share in the Indian car market.
Indications of launching ‘Creta EV’ soon
According to Unsoo Kim, Managing Director, Hyundai Motor India, “Even though there is a recession in the market, we have maintained profitability in the first half by controlling our costs.” He also said that the company is planning to launch ‘Creta EV’ for the mass market soon. He expressed hope that Creta EV can prove to be a game changer for India’s electric vehicle (EV) market. Is.
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Highlights of second quarter results
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net profit: 16% decline in Q2FY25 to Rs 1,375 crore.
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decline in revenue: The company’s total income declined by 7.5% to Rs 17,260 crore, from Rs 18,660 crore in Q2FY24 last year.
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Decrease in EBITDA: EBITDA for this quarter was Rs 2,205 crore, which is 10% less than last year.
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operating margin: Decreased from 13.1% last year to 12.8%.
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Due to decline in earnings
Some of the major reasons for the decline in Hyundai India’s earnings this quarter were:
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decline in domestic sales: The company’s domestic sales declined by 5.75% to 1,49,639 units.
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decrease in exports: The company exported a total of 42,300 units in this quarter.
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Geo-political challenges: The company has been affected by geo-political circumstances, which affected sales in domestic and international markets.
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Quarterly results came for the first time after IPO
Hyundai Motor India launched its IPO in India in October 2024, which was considered the largest IPO in the country. The issue price of the IPO was Rs 1,960 per share, while it was listed on BSE at Rs 1,931 and on NSE at Rs 1,934 i.e. at a discount. The company has released quarterly results for the first time since its IPO. On November 12, the company’s shares closed almost flat at Rs 1,820 on BSE.
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future plan
Hyundai India believes that demand will remain in the automobile sector in the mid to long term. The company is focusing on maintaining quality while maintaining a balance between its volumes, market share, and margins. Hyundai India’s second quarter results reflect the challenges facing the company. However, the company’s long-term planning and launch of new products indicate that the company expects strong performance in the future. With the launch of the upcoming ‘Creta EV’, Hyundai aims to further strengthen its position in the electric vehicle (EV) market.
