The company's EBITDA margins contracted to 12.8% from 13.1% as both domestic and export sales fell.
12 Nov 2024 | 2380 Views | By Autocar Professional Bureau
Hyundai Motor India Ltd (HMIL), the country's second-largest carmaker, reported a 15.5% year-on-year decline in net profit to Rs 1,375.5 crore for the quarter ended September 30, 2024, as geopolitical tensions and seasonal market conditions impacted both domestic and export operations.
The company's revenue from operations fell 7.5% to ...
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Hyundai Motor India Ltd (HMIL), the country's second-largest carmaker, reported a 15.5% year-on-year decline in net profit to Rs 1,375.5 crore for the quarter ended September 30, 2024, as geopolitical tensions and seasonal market conditions impacted both domestic and export operations.
The company's revenue from operations fell 7.5% to Rs 17,260.4 crore, while EBITDA margins contracted to 12.8% from 13.1% in the same quarter last year. The performance was significantly affected by the ongoing Red Sea crisis, which disrupted export channels, particularly to Middle Eastern markets.
The automotive major saw its domestic sales volume decline by 5.8% to 149,639 units, while exports witnessed a steeper fall of 17.1% to 42,300 units.
SUV sales, a key focus area for the company, also fell to 102,636 units during the quarter from 103,178 in the year-ago period. However, because of the overall decline in sales, SUVs now account for 69% of domestic sales, up from 65% in the previous year.
The company's EBIT margin to fell to 9.8% from 10.1%.
However, on a positive side, material costs fell to 72.5% of revenue from 74.8% a year ago, while employee expenses rose to 3.2% from 2.6%. Other expenses also rose to 11.5% of revenue from 9.5%.
The financial results reflect the broader challenges facing India's automotive industry, including global supply chain disruptions and evolving consumer preferences.