Owing to subdued demand in the domestic market and global headwinds impacting exports, Hyundai Motor India Ltd (HMIL) on Tuesday reported a 19% decline in its net profit or profit after tax (PAT) for the quarter ending December this fiscal (Q3FY25) at Rs 1,161 crore. It reported a net profit of Rs 1,425 crore profit in the same quarter last financial year (Q3FY24). Sequentially, the profit slipped 15.6% as the carmaker had reported a PAT of Rs 1,375 crore in the preceding September quarter (Q2FY25).
The company sold a total of 186,408 units (domestic plus exports) of passenger vehicles during the reported quarter as against 190,979 units sold in the third quarter of the financial year 2024.
Unsoo Kim, Managing Director of HMIL said, “While the challenges persist in the overall market due 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.”
Following the announcement of lower profits, Hyundai Motor India's share price fell 1.27% on Tuesday, closing at Rs 1,622.75 on the BSE. In contrast, benchmark indices Sensex and Nifty both ended the day with gains of around 0.70% each.
Hyundai's consolidated revenue from operations for the Creta SUV maker came down to Rs 16,648 crore in Q3FY25, compared to Rs 17,260 crore in the previous quarter, a decline of 3.5% quarter-on-quarter. On an annual basis, the fall was 1.3%.
The company’s EBITDA margin took a sharp hit in the reported quarter (Q3FY25) as it came down to 8.1% from 9.7% in the same quarter last year. The decline in margins, according to Hyundai, was mainly due to subdued demand & geo-political factors.
The carmaker noted that overall market sentiment remains weak, with urban demand yet to recover. Tarun Garg, Chief Operating Officer at HMIL, emphasised that the slowdown in the passenger vehicle (PV) market is cyclical, following robust growth over the past three years. He highlighted several potential positives for the industry, including expectations of lower interest rates, increased global stability with the resolution of ongoing conflicts, and improved rural sentiment. Garg projected low single-digit growth for the PV industry in Q4 FY25.
The company’s exports witnessed the impact of the Red Sea crisis and political instability in Latin America during the quarter. The company shifted its attention towards Africa and other markets.