Hyundai Motor India Ltd (HMIL) on Tuesday reported a 15.5 per cent decline in consolidated net profits for the quarter ended September 30, weighed down by weak domestic demand and the Red Sea crisis which affected its exports.
The country’s second largest auto maker posted a net profit of ₹1,375.5 crore compared with ₹1,628.5 crore a year ago. Revenues declined over the previous year period to ₹17,260.4 crore from ₹18,659.7 crore.
Sales in volume terms were affected by both domestic and geo-political factors. Domestic sales fell 5.8 per cent to 149,639 units in the second quarter from 158,772 units last year, while exports took a knock of 17 per cent to 42,300 passenger vehicles from 51,005 units last year.
Shares of HMIL on Tuesday ended 0.98 per cent lower at ₹1,804.45.
The company said it expects a sustained demand momentum in the industry and will continue to focus on quality of growth by maintaining an optimum balance between volume, market share and margins.
“Despite the sluggish market conditions, we have successfully maintained profitability in the first half of 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 and we expect it will be a game changer in the EV market,” Unsoo Kim, managing director, added.
The company said in a presentation that during the quarter, it went stronger on premiumisation with continuous growth in SUV (sports utility vehicle) contribution.
This was accompanied by a steady growth in CNG volumes supported by dual-cylinder technology. During the second quarter, it sold 102,636 SUVs against 103,178 last year.
