Unsoo Kim, Managing Director of Hyundai Motor India Ltd
Unsoo Kim, Managing Director of Hyundai Motor India Ltd

Hyundai Motor India Ltd (HMIL), in its first quarterly financial results announcement post its IPO last month, reported a 15.5 per cent year-on-year drop in profit after tax (PAT) for the September 2024 quarter, along with a 3 per cent decline in PAT for the first half of the fiscal year.

For the quarter ended September 30, 2024, HMIL’s PAT stood at ₹1,375.5 crore, down from ₹1,628.5 crore in the same period last year. Its EBITDA declined by 9.6 per cent, reaching ₹2,205.3 crore compared to ₹2,440 crore in Q2 FY24. Revenue dropped 7.5 per cent year-on-year to ₹17,260.4 crore from ₹18,659.7 crore.

The company cited geopolitical tensions in West Asia, particularly the Red Sea crisis, among factors that impacted revenue and margins. However, improved cost efficiency and a favourable domestic product mix helped cushion the effects of declining volumes.

HMIL’s domestic sales dropped 5.8 per cent to 149,639 units in Q2FY25, down from 158,772 units in Q2FY24, affected by cyclical and seasonal demand shifts. Export volumes also suffered, falling 17.1 per cent due to disruptions in West Asia, with shipments totalling 42,300 units compared to 51,005 units in the year-ago quarter.

For the half-year period ended September 30, 2024, PAT reached ₹2,865.1 crore, a slight decline from ₹2,957.7 crore in H1 FY24, while revenue slipped by 1.9 per cent to ₹34,604.6 crore. However, the company’s EBITDA for H1 grew to ₹4,545.6 crore, up from ₹4,437.3 crore last year, raising the EBITDA margin to 13.14 per cent from 12.58 per cent.

“Despite challenging market conditions, we have maintained profitability in H1FY25 through ongoing cost control measures. We are set to launch the Creta EV for the mass market in the coming months, and we expect it will be a game changer in the EV market,” said Unsoo Kim, Managing Director of HMIL. The Creta EV is expected in Q4 of this fiscal, while the new Chennai plant, scheduled to commence production in Q3FY26, will strengthen localisation and competitiveness in EV production.

HMIL’s SUV sales continued to benefit from the premiumisation trend in the market, with SUVs accounting for 68 per cent of total volumes (383,994 units) in H1, up from 61 per cent a year ago. The share of hatchbacks declined to 20 per cent from 24 per cent, and sedans represented 12 per cent, down from 16 per cent.

Domestic volume mix for Q2FY25 vs Q2FY24

Domestic volume mix for Q2FY25 vs Q2FY24

In terms of fuel mix, petrol vehicles comprised 70 per cent of total sales in H1 FY25, slightly down from 71 per cent a year earlier, while diesel vehicle sales held steady at 18 per cent. EV sales dropped to 223 units in H1 FY25, from 1,259 units in H1 FY24. Meanwhile, CNG and EV vehicles together made up 12 per cent of total volumes, up marginally from 11 per cent last year, with CNG demand rising due to dual-cylinder technology innovations.

Looking ahead, the company management expects low single-digit growth to continue in the near term, impacted by geopolitical issues, high interest rates, and fluctuating demand. However, HMIL remains optimistic, citing a 30% year-on-year increase in October sales, signalling resilience within the industry. The company anticipates this moderate growth trend will carry through the second half of the year.

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