Hyundai Motor India Reports Record Revenue Despite Profit Dip Amid Commodity Headwinds
NEW DELHI: Hyundai Motor India, the country’s second-largest automaker, has posted a mixed financial performance for the second quarter of the current fiscal year. While the company achieved historic milestones in sales volume and revenue, its bottom line faced significant pressure from rising input costs and a challenging commodity market.
For the three months ending September 30, Hyundai Motor India reported a consolidated net profit of ₹1,196.2 crore, marking a 24% decline compared to the ₹1,572.3 crore profit recorded in the same period last year.
Revenue Growth and Margin Pressure
Despite the slide in net profit, the company’s top-line performance remained robust. Consolidated revenue for the quarter climbed 19% year-on-year, reaching ₹20,696.1 crore. This achievement marked the first time the automaker’s quarterly revenue has surpassed the ₹20,000 crore milestone since its inception.
However, profitability was hampered by a sharp contraction in margins. Earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding other income, dropped 19% to ₹1,974.5 crore. Consequently, the EBITDA margin narrowed to 9.5%, down from 13.9% in the corresponding quarter of the previous year. According to the company, while internal cost-reduction initiatives and a favorable product mix helped drive sequential improvements, the broader commodity headwinds exerted considerable pressure on overall margins.
Record Volumes and Market Penetration
Tarun Garg, Managing Director and CEO of Hyundai Motor India, highlighted that Q2 was a period of record-breaking activity. The company delivered its highest-ever quarterly sales volume, totaling 219,072 units.
Domestic demand remained a key pillar of this performance, with domestic sales rising 19% year-on-year. The company’s focus on diverse markets paid off, as it achieved record rural penetration of 26.6%. Furthermore, there has been a notable shift in consumer preference toward cleaner fuel alternatives, with CNG vehicles contributing a record 19.1% to the total sales mix.
Future Outlook and Strategic Expansion
Looking ahead to the second half of the fiscal year, Hyundai anticipates a moderation in overall industry growth. Nevertheless, the company maintains an optimistic stance, projecting a sales growth rate of 8-10%, which it expects will outpace the broader market. This confidence is underpinned by the upcoming launch of two new SUVs, a segment where Hyundai continues to strengthen its foothold.
Exports also remain a vital component of the company’s growth strategy. Despite prevailing geopolitical challenges, exports grew 4% year-on-year and saw a 38% sequential jump. The company expects double-digit growth in exports during the second half of the year, driven by increasing demand in Mexico and Latin American markets. The upcoming export commencement of the Bayon SUV is expected to further bolster these numbers.
“We see H2 as a period of accelerated momentum,” said Garg. He noted that the company is entering a “golden product cycle” and is firmly on track to launch a dedicated mass-market electric vehicle (EV) in the fourth quarter.
Shares of Hyundai Motor India responded positively to the announcement, closing 1.13% higher on the BSE at ₹1,875 on Wednesday. Despite the short-term cost pressures, the company remains committed to maintaining its leadership position by balancing sustainable growth with long-term profitability.
Disclaimer: This content is auto-generated for informational purposes only.
Source: Read Original News
