The company's strategic focus on the SUV segment and cost optimization helped maintain profitability even as revenue faced moderate pressure
12 Nov 2024 | 1789 Views | By Autocar Professional Bureau
Hyundai Motor India Ltd reported a 7.50% year-over-year decline in revenue to Rs 17,260.38 crore, in the second quarter. The quarter saw net profit decrease to Rs 1,375.47 crore from Rs 1,628.46 crore of Q2 FY24, which the company attributed to a combination of weak market sentiments and geopolitical factors ...
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Hyundai Motor India Ltd reported a 7.50% year-over-year decline in revenue to Rs 17,260.38 crore, in the second quarter. The quarter saw net profit decrease to Rs 1,375.47 crore from Rs 1,628.46 crore of Q2 FY24, which the company attributed to a combination of weak market sentiments and geopolitical factors affecting the automotive sector.
During the quarter, the company sold 191,939 units, including 149,639 units in the domestic market and 42,300 units in exports.
The automaker reported consolidated revenue of Rs 34,604.62 crore for H1FY25, marking a marginal decline of 1.92% from Rs 35,283.20 crore in the corresponding period last year. Despite this slight dip, HMIL managed to improve its EBITDA margin to 13.14% from 12.58% year-over-year, highlighting successful cost management initiatives.
Net profit for the first half stood at Rs 2,865.12 crore, compared to Rs 2,957.65 crore in the previous year, maintaining a healthy profit margin of 8.2%. The company's profit before tax (PBT) reached Rs 3,853.23 crore, showing strong operational efficiency despite market challenges.
Vehicle sales for the first half reached 383,994 units, with domestic sales accounting for 299,094 units. The company's SUV segment continued to be a strong performer in the domestic market, helping offset pressures in other segments. Export volumes contributed 84,900 units, demonstrating Hyundai's commitment to maintaining its global presence.
Future Outlook
Unsoo Kim, Managing Director of HMIL, expressed confidence in the company's strategic direction while acknowledging the challenging environment. "Despite the sluggish market conditions, we have successfully maintained profitability in H1 FY2024-25, largely due to our proactive and continuous cost control measures," he said during the results announcement.
In a significant development for the company's electric vehicle strategy, Kim revealed plans to launch the CRETA EV for the mass market in the coming months. "The CRETA EV will be a game changer in the EV market," he predicted, signaling Hyundai's commitment to expanding its electric vehicle portfolio in India.
Looking ahead, Hyundai India maintains an optimistic mid to long-term outlook, anticipating sustained demand momentum in the industry. The company's strategy focuses on achieving quality growth while maintaining an optimal balance between volume, market share, and margins.
The automaker's emphasis on the SUV segment, coupled with its planned entry into the mass-market EV space with the CRETA EV, positions it well to capitalize on evolving consumer preferences and the industry's shift toward electrification.
Market Impact
Industry analysts note that Hyundai's performance reflects broader trends in the Indian automotive sector, where manufacturers are navigating challenges including supply chain pressures, changing consumer preferences, and the transition toward electric vehicles. The company's ability to maintain profitability while investing in future technologies suggests a well-balanced approach to these challenges.
The announcement of the CRETA EV launch has generated significant interest in the industry, as it represents one of the first mass-market electric SUV offerings from a major manufacturer in India, potentially setting the stage for accelerated EV adoption in the country's mid-size vehicle segment.