Hyundai Motor India shares in focus after Q3 PAT falls 19% YoY on lower domestic car sales, exports

Hyundai Motor India shares will remain in focus on Wednesday after the firm reported a 19% year-on-year (YoY) decline in its December quarter consolidated net profit, which stood at Rs 1,161 crore, compared to Rs 1,425 crore in the same period last year, impacted by lower domestic sales and exports.

Q3FY25 revenue from operations for the Korean carmaker, known for producing the 'Creta' SUV and 'Grand i10' and 'i20' hatchbacks, was reported at Rs 16,648 crore, reflecting a 1.3% decrease from Rs 16,875 crore in the corresponding quarter of the previous financial year.

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The net profit declined by 16% on a sequential basis, compared to Rs 1,375 crore reported in Q2FY25, while the topline fell 3.5% from Rs 17,260 crore in the July-September quarter.

Hyundai Motor's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin stood at 11.27% in Q3FY25, compared to 12.88% in Q3FY24. The company attributed the decline in margins to subdued demand and geopolitical factors.

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Q3 Sales Volume

The company sold a total of 1,86,408 units of passenger vehicles during the quarter, including 1,46,022 units in the domestic market, with a strong contribution from the SUV segment.

Hyundai claimed to have achieved its highest-ever CNG penetration during the quarter, reaching an impressive 15%, up from 12% in Q3 of the previous year.

"During the quarter, the company demonstrated robust growth in rural penetration, reaching 21.2%, compared to 19.7% in the same period last year. The export volume stood at 40,386 units," the company filing said.

Commenting on the company’s results, Managing Director Unsoo Kim acknowledged the challenges in the overall market, attributing them to global factors. "Our business fundamentals remain strong, and we remain confident in our ability to leverage our strengths and actively explore potential opportunities to improve our volumes and profitability," Kim said.

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Outlook

"HMI is confident about its growth trajectory and is committed to driving long-term value for its stakeholders. The company has a positive outlook on the growing EV penetration in India and is moving towards electrification with a holistic approach," the company statement said.

It also mentioned that its newly launched CRETA Electric will drive "phenomenal success, build strong momentum, and be a game-changer in the EV landscape."

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