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Informist, Friday, May 16, 2025

By Anand JC

MUMBAI – Hyundai Motor India Ltd. Friday reported a top line and bottom line higher than analysts' expectations for the March quarter. Though it beat the Street view, the company's revenue grew just 1.5% on year. Its March quarter despatches fell about a percentage point. The company will launch 20 new fuel-run cars by the financial year 2029-30 (Apr-Mar), alongside six electric vehicles. Additionally, it announced its foray into hybrid powertrains.

Hyundai Motor reported a consolidated net profit of INR 16.1 billion for the quarter under review, down 3.7% from a year ago. Consensus estimates had pointed to a sharper 21% fall on year. The company earned INR 179.4 billion from its operations in the final quarter of FY25, up 1.5% on year. Analysts had expected a revenue of INR 172.3 billion.

The Creta maker's other operating revenue for the quarter was INR 4.1 billion, up nearly 17% on year. Its other income for the period fell 37% on year to INR 2.1 billion.

Hyundai Motor's earnings before interest, taxes, depreciation, and amortisation for the March quarter stood at INR 25.3 billion, largely unchanged from a year ago. However, its EBITDA margin slipped 20 basis points on year to 14.1%. The Verna maker's profit margin for the period fell a sharper 40 bps for the period.

FUEL MIX

Amid the increasing focus on electric vehicles in India, Hyundai Motor's fuel mix tipped about 200 basis points in favour of the greener variety in the March quarter compared to a year ago. About 85% of the vehicles Hyundai Motor sold in the March quarter in India ran on diesel or petrol powertrains, compared with 87% a year ago. The contribution of cars running on compressed natural gas remained unchanged on year at 13%.

In the same quarter last year, only 0.3% of the company's overall sales constituted cars running on electricity. This has increased to 2.4% in the March quarter this year. The company had sold 485 electric cars in the March quarter of FY24, which shot up to 3,668 units in the reporting quarter. In FY25, the company sold 3,969 electric cars, up 87%. The increase in electric car despatches can be attributed to the launch of the electric Creta earlier this year.

OUTLOOK FOR FY26

Like its peers, Hyundai Motor, too, noted that the demand sentiment for automobiles continues to be weak. The company aims to grow broadly in line with the industry, according to an investor presentation. The Society of Indian Automobile Manufacturers has forecast that the passenger vehicle segment will grow 1-2% in FY26.

Hyundai Motor said it will focus on exports to offset the drag in the domestic market. The company is targeting 7-8% growth in exports. The share of exports in the company's overall sales pie has been climbing steadily. In the March quarter last year, exports of cars made by Hyundai Motor in India accounted for 18.4% of its overall sales. This climbed to 22.2% in the December quarter but moderated to 20.2% in the March quarter.

To drive sustainable growth in the mid-to-long term, Hyundai Motor said it will invest INR 70 billion towards capital expenditure.

EXPENDITURE PORTFOLIO

Hyundai Motor's total expenditure for the reporting quarter was INR 159.7 billion, up 1.5% on year. Cost of materials consumed by the company remained largely unchanged from the previous year at INR 128.8 billion in the March quarter. 

Staff costs witnessed the sharpest surge in the quarter. The company spent INR 6 billion on employee benefits, up 21% on year. The depreciation and amortisation expenses fell nearly 5% on year to INR 5.3 billion.

Hyundai Motor reported a profit after tax of INR 56.4 billion for FY25, down 7%. Its profit margin slipped 40 bps to 8.1% from FY24. The company's revenue fell to INR 691.9 billion, down nearly a percentage point from FY24. The EBITDA for FY25 was INR 89.5 billion, down around 2% from FY24. The company reported an EBITDA margin of 12.9% for FY25, down 20 bps. It expects to maintain a double-digit EBITDA margin going ahead. 

The South Korean automobile giant's Indian arm reported its March quarter earnings during market hours. Its board has approved a dividend of INR 21 per share.

Friday, Hyundai Motor India's shares closed 1.1% higher at INR 1,855.60 on the National Stock Exchange.  End

Edited by Rajeev Pai

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