Shares of Hyundai Motor India Ltd (HMIL) dropped 5% to a new low of Rs 1,713.25 on Wednesday amid heavy trading volumes after the company reported a 15.5% year-on-year (YoY) decline in net profit to Rs 137.55 crore for Q2FY25.
Revenue from operations fell 7.5% YoY to Rs 17,260 crore, down from Rs 18,660 crore in the same quarter last year, while EBITDA margin narrowed slightly to 12.78% from 13.08%, reflecting tighter margins amidst a challenging operating environment.
By 12:25 pm, HMIL shares were trading 4,2% lower at Rs 1,728.10. In comparison, the BSE Sensex fell 0.82%. The stock is now 12.5% below its issue price of Rs 1,960 per share. It had listed on October 22, 2024.
The company’s management pointed out its commitment to maintaining profitability in the first half of FY25 through proactive cost-control measures and added that it remains optimistic about mid- to long-term demand in the automotive sector and aims to focus on growth quality by balancing volume, market share, and profit margins.
In terms of operational performance, Hyundai India’s domestic sales volume declined by 6% YoY to 1.5 lakh units, while export volumes saw a sharper 17% YoY drop to 42,000 units, heavily impacted by the Red Sea crisis, which disrupted sales in the Middle East which is a significant export market for the company. However, HMIL experienced a 30% increase in registrations during the festive season, which helped it reduce its inventory levels to 30 days.
HMIL is a subsidiary of Hyundai Motor Company which is the world’s third-largest auto original equipment manufacturer (OEM) by passenger vehicle sales and has been the second-largest passenger vehicle manufacturer in India since 2009.
The company produces a wide range of four-wheelers, transmissions, and engines, integrating advanced technology and innovative features. Notably, CNG penetration for its flagship model, Exter, rose to 28.4% in October from 22.2% in Q2FY25 and 18% in Q1FY2
