Hyundai Motor India Q2 Profit Surges 14.3% Driven by Strong Exports, Domestic Sales Lag

Hyundai Motor India Limited (HMIL) announced its second-quarter financial results, revealing a 14.3% year-on-year profit growth to ₹1,572 crore. This performance was largely propelled by a strategic product selection and a robust increase in export volumes, which climbed 21.5% to 51,400 units, now representing 27% of total sales. Total revenue rose marginally by 1.2% to ₹17,460 crore, with Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) growing 10.1% to ₹2,428 crore. The Ebitda margin also showed improvement, widening from 12.8% to 13.9%.

Despite these positive trends, domestic sales remained a challenge, falling 6.8% to 1,39,521 units. Unsoo Kim, the outgoing MD and CEO, noted that strong demand in the final week of the quarter, coinciding with GST reforms, helped offset earlier customer deferrals. HMIL continues to face stiff competition from domestic manufacturers like Tata Motors and Mahindra & Mahindra. Analysts express skepticism about HMIL's ability to recover market share, suggesting that its revenue reliance on high-margin segments like SUVs, exports, parts, and spares (70% of revenue) may limit the benefit from GST rate cuts, which primarily target affordable compact cars.

SUVs constituted 71% of sales volumes (99,220 units), though this was a slight decrease from the previous year. Hatchback sales saw a significant drop, while sedans experienced a modest increase. The company achieved its highest-ever rural penetration at 23.6%. In terms of fuel, petrol remains dominant (61%), but diesel, CNG, and Electric Vehicles (EVs) showed growth.

Impact This news directly impacts the Indian automotive sector by providing insight into a major player's performance, sales trends, and competitive positioning. It influences investor sentiment towards HMIL's parent company and competitors in the Indian market. The news affects the valuation of automotive stocks and related supply chains. Rating: 7/10.

Heading: Difficult Terms Explained: * Ebitda: Stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance, showing profitability before accounting for financing decisions, accounting decisions, and tax environments. * Ebitda Margin: Calculated by dividing Ebitda by total revenue, it represents the profitability of a company's core business operations as a percentage of its revenue. * GST: Goods and Services Tax. An indirect tax levied on the supply of goods and services in India. * SUV: Sport Utility Vehicle. A type of vehicle that combines aspects of road-going passenger cars with features from off-road vehicles such as raised ground clearance and four-wheel drive.