Hyundai Motor India Ltd (NSE: HYUNDAI): Hyundai Motor India Ltd announced its September quarter results for FY24. The company posted an increase of 16 % in its net profit consolidated. The company’s net profit stood at ₹1,375 crore as against ₹1,628 crore in the same quarter last year.
According to the financial report, the company’s operational revenue also declined by 7% year-on-year (YoY) to ₹17,260 crore.
During the quarter, the company recorded EBITDA (operational profit) of ₹2,205 crores as against ₹2,440 crores last year, i.e. a decline of 10%. As a result, the margin also declined by 30 bps to 12.8%.
Hyundai Motor India Ltd’s IPO was the largest domestic IPO ever but remained slightly below market expectations. The IPO was listed at a discount and currently, its shares are trading around ₹1,803, which is about 8% lower than the issue price.
Hyundai Motor India Ltd attributed the decline in the fourth quarter to lower market sentiment as well as geopolitical issues.
However, the company also said that it expects stable demand in the industry in the future and will keep its growth focused on quality with the right balance of volume, market share, and margins.
The company sold 1.91 lakh units in the period, from which 1.49 lakh units have been sold on the market in the country. The SUV segment contributed strongly to the domestic market. At the same time, the company’s export volumes stood at 42,300 units.
Unsoo Kim, MD, Hyundai India said that despite weak market demand conditions, we maintained our profitability in H1FY25, which is a result of our proactive and continued cost control measures.
The company reported revenue of ₹34,605 crore and a net profit of ₹2,865 crore in the first half. Hyundai also said that it will soon launch its CRETA EV in the Indian market and considers it to be a game changer in the EV segment.
Quick Fact
| Company name | Hyundai Motor India |
|---|---|
| Stock price | ₹2,07,000 (1.90%) |
| Net profit increase | 16% |
| Net profit for Q2 FY24 | ₹1,375 crore |
| Previous year’s net profit | ₹1,628 crore |
| Revenue YoY decline | 7% |
| Revenue for Q2 FY24 | ₹17,260 crore |
| EBITDA for Q2 FY24 | ₹2,205 crore |
| Previous year’s EBITDA | ₹2,440 crore |
| EBITDA decline | 10% |
| Margin decline | 30 bps |
| Current margin | 12.8% |
| Largest IPO status | Domestic IPO |
| Current trading price | ₹1,803 |
| Discount from the issue price | 8% |
| Reasons for decline | Market sentiment, geopolitical issues |
| Future demand expectation | Stable |
| Growth focus | Quality, volume, market share, margins |
| Units sold (total) | 1.91 lakh |
| Domestic units sold | 1.49 lakh |
| Export units sold | 42,300 |
| Strong domestic segment | SUV |
| H1 FY25 revenue | ₹34,605 crore |
| H1 FY25 net profit | ₹2,865 crore |
| Upcoming launch | CRETA EV |
| CRETA EV significance | EV market game changer |
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