In its first inaugural financial results since going public, Hyundai Motor India has showcased resilient profitability in H1FY25, navigating the complexities of an unpredictable market, despite a decline in revenue and unit sales. According to the company, this was possible due to its strategic blend of proactive cost management and a focused drive to solidify its position in pivotal market segments.
Balancing Profitability Amid Lower Revenues
For H1FY25, the company reported consolidated revenue from operations at INR 3,46,046.18 million, marking a slight decrease of 1.92% compared to INR 3,52,832.02 million in the same period of the previous year. The EBITDA margin, however, improved to 13.14% from the previous year’s 12.58%, highlighting successful cost-control measures that offset volume-related challenges.
In total, the company sold 3,83,994 passenger vehicle units in H1, with 2,99,094 units sold in the domestic market driven largely by the SUV segment. Export volumes reached 84,900 units, contributing to its overall stability in a challenging environment.
On the profitability front, the company’s Profit Before Tax (PBT) for H1 was INR 38,532.29 million, slightly lower than INR 40,205.15 million in H1FY24. Net Profit After Tax (PAT) stood at INR 28,651.21 million, down from INR 29,576.50 million in the previous year’s H1. Despite a reduction in volumes, the company maintained a healthy PAT margin of 8.2% in H1FY25, reflecting a strategic balance between market share and profitability.
In Q2FY25, the company faced a 7.50% decline in revenue from operations, amounting to INR 1,72,603.84 million compared to INR 1,86,596.91 million in Q2FY24. The EBITDA margin also saw a slight dip, reaching 12.78% from 13.08% YoY.
The total passenger vehicle sales for Q2 stood at 1,91,939 units, with 1,49,639 units sold in the domestic market, again supported by strong SUV sales. Export volumes were recorded at 42,300 units, demonstrating its ability to retain a robust presence in global markets.
Profit Before Tax for Q2 was INR 18,498.46 million, down from INR 22,320.36 million YoY. Similarly, the Net Profit for the quarter reached INR 13,754.69 million, compared to INR 16,284.64 million in the corresponding period of the previous year. The decline in profitability was primarily attributed to weak market sentiment and external geopolitical factors impacting the industry landscape.
Strategic Outlook
Looking ahead, the company expects steady demand in the automotive industry over the mid-to-long term. A strategic focus on maintaining an optimal balance between volume, market share, and margins will continue to guide its approach to sustainable growth. The company remains committed to scaling up its market offerings while closely monitoring cost efficiency to preserve profitability.
Unsoo Kim, Managing Director, 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 the mass market in the coming months, which we expect will be a game changer in the EV market.”
This planned launch of the CRETA EV marks the company’s focus on the electric vehicle segment, anticipating strong demand from the growing consumer interest in sustainable mobility solutions.
The company’s performance in H1 and Q2 FY 2024-25 showcases its resilience and adaptability in an unpredictable market. With its well-rounded focus on cost control, strategic market positioning, and a balanced approach to growth, it preparing itself well to navigate industry challenges and capitalise on emerging opportunities in both domestic and international markets.
It may be recalled that Hyundai Motor India's recent IPO raised $3.3 billion, marking India's largest to date. Despite a 4% slip in shares on the first day of trading, the company remains committed to its growth strategy.
Overall, Hyundai Motor India's first financial results post-IPO indicate a company navigating current challenges with a strategic focus on long-term growth and market adaptation.
Also Read: