Earnings Review
Hyundai Motor revenue down more than expected on weak sales
This story was originally published at 16:08 IST on 30 July 2025
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--Hyundai Motor Apr-Jun consol net profit INR 13.69 bln
--Analysts saw Hyundai Motor Apr-Jun consol net profit at INR 12.67 bln
--Hyundai Motor Apr-Jun consol PAT INR 13.69 bln vs INR 14.90 bln year ago
--Hyundai Motor Apr-Jun consol revenue INR 164.13 bln vs INR 171.31 bln
--Hyundai Motor Apr-Jun consol EBITDA INR 21.85 bln vs INR 23.40 bln yr ago
--Hyundai Motor Apr-Jun consol EBITDA margin 13.3% vs 13.5% year ago
--Hyundai Motor Apr-Jun consol EBITDA down 6.6% on year
--Hyundai Motor: Growth in exports offset impact of higher discounts on margin
--Hyundai Motor:Cost optimisation offset impact of higher discounts on margin
By Anand JC
NEW DELHI – The consolidated top line and bottom line of Hyundai Motor India Ltd. reported a year-on-year decline for the June quarter after the company's wholesale despatches contracted in double digits for the period. The company's net profit has shrunk for four straight quarters while its revenue has declined in three of the last four quarters.
The Creta maker's consolidated net profit for the June quarter stood at INR 13.7 billion, down over 8% on year. Analysts had expected its bottom line to fall 15% on year to INR 12.7 billion.
Hyundai Motor's revenue from operations for the reporting quarter fell over 5% on year to INR 164.1 billion. This fall is steeper than analysts' forecast of a 2% decline to INR 169.7 billion in the top line. This fall in the revenue coincides with the 12% on-year decline in its wholesale sales to 132,259 units during the quarter.
Revenue and net profit declined nearly 8% and over 15%, respectively, on a sequential basis. Hyundai Motor's other operating income, part of its revenue from operations, grew nearly 10% on year to INR 2.4 billion.
SALES PERFORMANCE
Hyundai Motor sold 90,531 sport utility vehicles during the June quarter, down over 10% from the year-ago quarter. These cars formed nearly 70% of the company's overall sales during the quarter.
Contribution of hatchbacks to the Exter maker's overall sales profile declined to 18% in Apr-Jun from 21% in the year-ago quarter. Hyundai Motor sold 24,118 hatchbacks during the quarter under review, down over 22% from the base quarter. Sales of sedans fell mildly on year to INR 17,610 units during the reporting quarter while its contribution to the overall mix grew a percent to 13%.
In terms of fuel mix, the contribution of electric cars increased to 1.4% during the latest quarter from 0.1% in the year-ago quarter but was lower than the 2.4% recorded in the sequential quarter. Petrol cars still dominate Hyundai Motor's overall fuel mix at 63% in the June quarter, down from 72% in the year-ago quarter.
The contribution of cars running on compressed natural gas increased to 16% in the June quarter from 11% in the base quarter. Diesel cars' contribution rose to 20% from 16% last year.
OPERATING PERFORMANCE
Hyundai Motor reported a consolidated earnings before interest, tax, depreciation, and amortisation of INR 21.9 billion, down almost 7% on year and nearly 14% sequentially. Its EBITDA margin was 13.3% for the reporting quarter, 20 basis points lower on year and 80 bps sequentially.
The company's profit margin for the June quarter was 8.2%, compared with 8.5% in the year-ago quarter and 8.9% in the March quarter. A favourable mix in its exports and cost optimisation efforts helped it minimise the impact of higher discounts on margin, Hyundai Motor said in an investor presentation.
EXPENSE PROFILE
The company incurred expenses totalling INR 147.8 billion during the reporting quarter, down 5% on year. Cost of materials consumed, which forms 80% of the company's overall expenses, remained largely unchanged from the year-ago quarter at INR 118.3 billion. Other expenses barely grew a percent on year, to INR 20 billion.
Employee benefits expenses saw the steepest rise among all expense heads as the company incurred staff costs of INR 6.2 billion, up nearly 13% on year. Depreciation and amortisation expenses were INR 5.3 billion, contracted mildly from the year-ago quarter. Hyundai Motor's tax expenses contracted 7% on year to INR 4.8 billion.
On Wednesday, shares of the company closed 0.7% down at INR 2,086.7 on the National Stock Exchange. End
Edited by Subhojit Sarkar
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