Hyundai Motor India Q2 PAT down 16% in first results after listing

Carmaker's revenue falls on weak market sentiment, geopolitical factors

Hyundai Motor India (HMIL), recently listed on Indian stock exchanges, reported a 15.5 per cent decline in profit after tax (PAT) for the second quarter (Q2) of 2024-25 (FY25), primarily due to weak market sentiment and geopolitical factors. Revenue from operations fell 7.5 per cent year-on-year (Y-o-Y) to Rs 17,260 crore in Q2FY25.

 

The company reported an earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 2,205 crore, with an Ebitda margin of 12.8 per cent, a 9.6 per cent decrease Y-o-Y.

 

HMIL stock dropped 0.98 per cent to Rs 1,804.45 per share on the BSE, a sizeable decline from its listing price of Rs 1,931 per share.

 

 

Unsoo Kim, managing director of HMIL, announced that the company would soon introduce a dividend payout policy. He expressed confidence in the long-term value of HMIL stock. HMIL is focusing on premiumisation: sunroofs now represent 53 per cent of sales in the first half (H1) of FY25, up from 47.4 per cent in H1 of 2023-24.

 

Automatics now constitute 25.3 per cent of sales, and 14.4 per cent of Hyundai vehicles sold in India are equipped with advanced driver assistance systems. Sport utility vehicles (SUVs) account for 68.6 per cent of Hyundai’s total sales, up from 60 per cent last year. 

 

In Q2, the company sold 191,939 passenger vehicles, including 149,639 units in the domestic market, driven primarily by SUV sales. Export volume stood at 42,300 units.

 

Kim said, “Despite sluggish market conditions, we have maintained profitability in H1FY25 due to proactive and continuous cost-control measures. We will launch the Creta EV (electric vehicle) for the mass market, which we expect to be a game-changer in the EV market.”

 

The export market, particularly in West Asia, has faced challenges due to the Red Sea crisis. Hyundai’s average selling price in the domestic market during Q2 stood at Rs 7.7 lakh, compared to Rs 7.5 lakh in export markets.

 

Tarun Garg, chief operating officer of HMIL, projected that rural growth will outpace urban growth. Rural sales have shown strong performance this year, supported by good monsoons and high minimum support prices. Rural sales now account for 21 per cent of Hyundai’s overall sales, up from 20 per cent last year.

 

The Indian market has grown by 3.9 per cent between January and October this year, and Garg expects low single-digit growth in the second half of FY25.

 

We have access to Hybrid tech: MD 

Unsoo Kim, managing director of HMIL, said on Tuesday that Hyundai Motor Corporation offers successful hybrid models in markets like the US. "HMIL has access to this technology and is positioned to launch hybrids in India depending on market demand,” Kim said. Competitors Maruti Suzuki and Toyota currently lead in India’s hybrid market, viewing hybrids as a bridge between internal combustion engines and electric vehicles.