Hyundai maintains profitability in H1 FY25 despite a sluggish market

Hyundai Motor India Limited has reported Rs 346,046.18 million in revenue from operations for the first half of FY2024-25, a decrease of 1.92% against Rs 352,832.02 million in the corresponding period of the previous year.

The company sold a total of 383,994 units of passenger vehicles during this period. This included 299,094 units in the domestic market, with a strong contribution from the SUV segment. The export volume stood at 84,900 units.

The Profit Before Tax (PBT) for H1 of FY2024-25 stood at Rs 38,532.29 million, compared to Rs 40,205.15 million of H1 FY2023-24. The Net Profit (PAT) for the period stands at Rs 28,651.21 million compared to Rs 29,576.50 million of H1 FY2023-24. Despite reduction in volumes, the company was able to maintain PAT of 8.2% during H1 of FY 2024-25.

Highlights of Q2 (July to September 2024), FY 2024-25 [Consolidated]:

During this quarter, the company registered revenue from operations of Rs 172,603.84 million, which is a decrease of 7.50% as against Rs 186,596.91 million in the corresponding quarter of the previous year.

EBITDA margin decreased to 12.78% from 13.08% YoY.

Hyundai sold a total of 191,939 units of passenger vehicles during this quarter. This included 149,639 units in the domestic market with a strong contribution from SUV segment. The export volume stood at 42,300 units.

The Profit Before Tax (PBT) for Q2 of 2024-25 stands at Rs 18,498.46 million compared to Rs 22,320.36 millionof Q2 FY2023-24. The Net Profit (PAT) for the quarter stands at Rs 13,754.69 million compared to Rs 16,284.64 million of Q2 FY2023-24. The declines in PBT and PAT were mainly due to weak market sentiments and geo-political factors.

Outlook

In the mid to long term, Hyundai expects a sustained demand momentum in the industry and will continue to focus on quality of growth by maintaining an optimum balance between volume, market share and margins.

Commenting on Hundai Motor’s results, Managing Director Unsoo Kim said, “Despite the sluggish market conditions, we have successfully maintained profitability in H1 FY 2024-25, largely due to our proactive and continuous cost control measures. Further, we will be launching the CRETA EV for mass market in the coming months and we expect it will be a game changer in the EV market.”