Hyundai Motor Q2 result: Profit drops 16.5% to Rs 1,338 cr on weak demand

Hyundai Motor India, the country's No.2 carmaker by market share, reported a 16.5 per cent decline in quarterly profit due to lower domestic sales and as Red Sea disruptions hurt exports, its first earnings report since listing showed on Tuesday.

The company's shares fell nearly 3 per cent before recovering to trade down about 1 per cent in late afternoon trading.

Hyundai, which makes the 'Creta' SUV, said its standalone profit dropped to Rs 1,338 crore ($158.6 million) in the second quarter ended Sept. 30, from Rs 1,602 crore a year earlier.

Hyundai, whose 15 per cent market share trails only Maruti Suzuki's 41 per cent, said weak demand in India led to a 6 per cent drop in domestic sales, while exports fell 17 per cent due to disruptions around the Red Sea.

Houthi rebels have been attacking ships on the Red Sea since late 2023, which has severely hurt global supply chains and trade as vessels are diverted around Africa's Cape of Good Hope.

On the domestic front, India's car sales from July to September dropped for the first time in 10 quarters, dragged by poor demand for small cars and slowing growth for some SUV manufacturers, including Hyundai and Maruti.

Last month, Maruti, which mostly sells small cars, reported its slowest quarterly revenue growth in nearly three years.

Hyundai's overall revenue fell 7.5 per cent to Rs 16,961 crore in the quarter as sales volumes, including exports, dropped about 9 per cent in the quarter.

SUV sales, which form about 60 per cent of Hyundai's volumes, dipped 0.5 per cent.

The company, which went public in October following a $3.3 billion IPO that was the country's largest ever, said it expects sustained demand momentum for cars in the mid to long term. ($1 = 84.3800 Indian rupees)