Hyundai Motor India shares drop 3% on weak Q2 numbers; profit tanks 16% YoY

The fall in Hyundai Motor India's stock price follows its announcement of financial results for the second quarter of the FY25, which is also its maiden quarterly earnings since its market debut

Shares of recently-listed Hyundai Motor India dropped 2.73 per cent to Rs 1,772.20 per share on the NSE during intra-day deals on Tuesday, November 12, 2024. The fall in Hyundai Motor India’s stock price follows its announcement of financial results for the second quarter of the current fiscal year (FY25), which is also its maiden quarterly earnings since its market debut on October 22, 2024.

 

In the second quarter of FY25, the company’s consolidated revenue from operations stood at Rs 17,260 crore, reflecting a drop of 8 per cent year-on-year (Y-o-Y) from Rs 18,660 crore reported in the corresponding quarter of the previous fiscal year. 

 

Hyundai Motor India’s profit after tax (PAT) dropped 16 per cent Y-o-Y to Rs 1,375 crore in Q2FY25 from Rs 1,628 crore reported in Q2FY24. 

 

At the operating level, earnings before interest, tax, depreciation, and amortisation (Ebitda) fell by 10 per cent Y-o-Y to Rs 2,205 crore in the September quarter from Rs 2,440 crore reported in the corresponding quarter of FY24. Consequently, the Ebitda margin dropped 30 basis points to 12.8 per cent in Q2FY25 from 13.1 per cent reported in the year-ago period.

 

Hyundai Motor India outlook  

In the mid to long term, the company expects sustained demand momentum in the industry and will continue to focus on quality growth by maintaining an optimum balance between volume, market share, and margins, Hyundai Motor India said in a statement.

 

“Despite the sluggish market conditions, we have successfully maintained profitability in H1 FY 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,” said Unsoo Kim, managing director, Hyundai Motor India. 

 

Hyundai Motor India IPO details  

Hyundai Motor India launched its initial public offering (IPO) in October this year. The offering, which was the largest-ever public issue in Indian markets, comprised an offer for sale, with Hyundai Korea divesting 142,194,700 shares to raise up to Rs 27,870.16 crore. Post the completion of its IPO, the company’s shares listed at Rs 1,931 on the BSE, marking a 1.47 per cent discount to its issue price of Rs 1,960 per share.

 

Hyundai Motor India, the Indian arm of Hyundai Motor Company, is the world’s third-largest auto OEM by passenger vehicle sales. In India, it has been the second-largest passenger vehicle manufacturer since 2009. The company produces innovative, feature-packed four-wheelers, transmissions, and engines, utilising cutting-edge technology. As of November 12, 2024, Hyundai Motor India enjoys a market capitalisation of Rs 1,46,582.41 crore on the NSE.

 

At around 2:32 PM, Hyundai Motor India shares were trading at Rs 1,803.10 per share, down 1.04 per cent from its previous close of Rs 1,822.05. The company’s stock is currently 8 per cent lower than its IPO allotment price and 6.62 per cent below its listing price.

 

Meanwhile, the benchmark NSE Nifty50 was trading at Rs 23,968.15, down 173.15 points or 0.72 per cent.