Hyundai Motor India Q2 Results: 16% Profit Drop

Hyundai Motor India Ltd recently announced its financial results for the second quarter of FY25, revealing a decrease in both net profit and revenue. This decline reflects the effects of challenging market conditions and global factors.

This is Hyundai Motor’s first earnings report following its listing on the Indian stock exchanges, sparking interest in the auto giant’s performance, particularly regarding the impact on Hyundai’s share price.

Q2 FY25 Financial Performance

In Q2 FY25, Hyundai Motor India posted a consolidated net profit of ₹1,375.47 crore, marking a 16% decline from ₹1,628.46 crore in Q2 FY24. Revenue from operations also fell 7.5% year-on-year (YoY) to ₹17,260.38 crore from ₹18,659.69 crore. 

The company’s operating metrics further demonstrated a challenging quarter, with Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) dropping 10% YoY to ₹2,205 crore from ₹2,441 crore. Amid these results, Hyundai share price experienced a dip, reflecting the impact of lowered financial performance on investor sentiment.

Sales and Market Performance

Hyundai Motor India recorded total passenger vehicle sales of 1,91,939 units in the July-September quarter, showing resilience despite challenging market conditions. However, domestic sales saw a 5.75% decline YoY, with 1,49,639 units sold, while the export volume reached 42,300 units. 

Strategic Developments and Future Plans

Despite recent challenges, Hyundai has strategic plans in place to regain momentum. The anticipated launch of the Hyundai Creta EV is expected to be a turning point for the brand in India’s competitive electric vehicle (EV) market. The introduction of this EV aligns with Hyundai’s broader goal of capturing a significant share in the rising Indian EV sector. 

Impact on Hyundai Share Price

The announcement of Hyundai’s Q2 results had an immediate impact on its share price. Following the earnings release, Hyundai’s stock experienced a dip of ₹18.10 or 0.99%, reaching ₹1,803.95 from an opening price of ₹1,826.20 on November 12, 2024. 

Conclusion

As Hyundai Motor India continues to adapt to evolving market dynamics and invest in high-demand segments like EVs, its stock could become a compelling option for investors looking at long-term growth in the automotive industry. The Hyundai share price could see renewed interest from investors as these plans materialise, especially if the Creta EV successfully captures a sizable market share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.