Hyundai Motor India Reports Q3 Results: Profit Declines 19% Amidst Lower Sales
Hyundai Motor India (HMI) has released its financial results for the third quarter of the fiscal year 2025 (Q3 FY25), revealing a 19% year-on-year decline in consolidated net profit. The decline is primarily attributed to decreased domestic car sales, lower exports and challenging geopolitical factors.
Financial Performance Overview
For Q3 FY25, Hyundai Motor India reported a consolidated net profit of Rs 1,161 crore, down from Rs 1,425 crore in the same period last year. Revenue from operations also experienced a slight decrease of 1.3%, totaling Rs 16,648 crore compared to Rs 16,875 crore in Q3 FY24. Known for popular models like the 'Creta' SUV and the 'Grand i10' and 'i20' hatchbacks, Hyundai's performance reflects the broader challenges faced by the automotive industry.
Following the earnings announcement, Hyundai Motor's shares were trading at Rs 1,641.40 on the NSE, reflecting a minor decrease of 0.14%.
On a sequential basis, the net profit declined by 16% from Rs 1,375 crore in Q2 FY25, while revenue decreased by 3.5% from Rs 17,260 crore in the July-September quarter.
EBITDA Margin Impacted
The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin for Q3 FY25 stood at 11.27%, down from 12.88% in Q3 FY24. The company attributed this decline to subdued demand and global geopolitical factors impacting the automotive sector.
Q3 Sales Volume and Market Performance
During the third quarter, Hyundai Motor India sold a total of 1,86,408 passenger vehicle units. Domestic sales accounted for 1,46,022 units, with a significant contribution from the SUV segment.
Record CNG Penetration and Rural Growth
Despite the overall decline, Hyundai achieved its highest-ever CNG penetration rate, reaching 15% in Q3 FY25, up from 12% in the same period last year. The company also reported robust growth in rural markets, with penetration reaching 21.2%, compared to 19.7% in Q3 FY24. Export volumes for the quarter stood at 40,386 units.
Management Commentary and Future Outlook
Managing Director Unsoo Kim acknowledged the challenges faced by the industry, stating, "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."
Hyundai Motor India expressed a positive outlook on the growing electric vehicle (EV) market in India. The company is actively pursuing electrification with a comprehensive strategy. HMI is optimistic about its newly launched CRETA Electric, anticipating it to achieve significant success, build strong momentum, and become a game-changer in the EV landscape. The company remains committed to driving long-term value for its stakeholders and focusing on sustainable growth through innovation and strategic market positioning.
Hyundai Motor India continues to navigate a challenging market environment while focusing on strategic initiatives like electrification and expanding its presence in key segments to ensure sustained growth and profitability in the future.
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