What Led to Hyundai Motor India's 4% Drop in Q4 Net Profit?
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Synopsis
Hyundai Motor India has reported a 4% decrease in net profit for Q4 FY25, despite a rise in revenue. The company navigated macroeconomic challenges and showcased strong sales, particularly in the SUV segment. With a dividend declaration and cautious outlook, Hyundai continues to adapt to market changes.
Key Takeaways
- Net profit for Q4 FY25 fell by 4% to Rs 1,614 crore.
- Revenue from operations increased by 1.5% to Rs 17,940 crore.
- Final dividend announced at Rs 21 per share for FY25.
- EBITDA rose to Rs 2,533 crore, with a margin of 14.1%.
- Creta SUV led the midsize segment with a market share over 30%.
Mumbai, May 16 (NationPress) On Friday, Hyundai Motor India disclosed a modest decrease in its net profit for the fourth quarter of the fiscal year 2024-25 (Q4 FY25). The automaker's net profit stood at Rs 1,614 crore for Q4, representing a decline of nearly 4 percent compared to Rs 1,677 crore reported during the same quarter last fiscal year (Q4 FY24), as indicated in its filing with the stock exchange.
Conversely, Hyundai's revenue from operations experienced a year-on-year increase of 1.5 percent, reaching Rs 17,940 crore during the quarter ending March 2025.
The firm also declared a final dividend of Rs 21 per equity share for FY25, as per the exchange report.
Hyundai's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) saw a slight uptick to Rs 2,533 crore, although the EBITDA margin slightly declined to 14.1 percent, down from 14.3 percent in Q4 FY24.
The company acknowledged facing global and macroeconomic difficulties throughout the year; nevertheless, it succeeded in achieving robust sales figures.
Hyundai recorded domestic sales of 5.99 lakh units and export volumes of 1.63 lakh units.
Among its standout models, the Creta SUV maintained its position as a leader in the midsize SUV category, commanding over 30 percent market share.
Additionally, the company noted its highest-ever contribution from domestic SUVs, which accounted for 68.5 percent of total domestic sales.
Demand was strong in both urban and rural areas. Unsoo Kim, CEO and MD of Hyundai Motor India, stated that FY25 showcased the company's capability to adapt to evolving customer preferences and market dynamics.
Looking ahead, Kim expressed that the company remains cautiously optimistic regarding domestic demand in the short term, given the ongoing macroeconomic challenges and declining consumer sentiment.
After the earnings announcement, Hyundai India's shares closed unchanged at Rs 1,839.70, marking an increase of Rs 3.70 or 0.20 percent.
Point of View
It's crucial to assess Hyundai's ability to navigate economic challenges while maintaining a strong market presence. The reported decline in profit amidst rising revenue showcases the complexities facing automakers today. Hyundai's adaptive strategies and focus on customer preferences highlight their commitment to resilience in a fluctuating market.
NationPress
22/07/2025
Frequently Asked Questions
What was Hyundai Motor India's net profit for Q4 FY25?
Hyundai Motor India's net profit for Q4 FY25 was Rs 1,614 crore, down nearly 4% from Rs 1,677 crore in Q4 FY24.
How much did Hyundai's revenue rise in Q4 FY25?
Hyundai's revenue from operations rose by 1.5% year-on-year to Rs 17,940 crore during the March 2025 quarter.
What dividend did Hyundai declare for FY25?
Hyundai announced a final dividend of Rs 21 per equity share for FY25.
How did the EBITDA margin change for Hyundai in Q4 FY25?
The EBITDA margin for Hyundai decreased to 14.1% in Q4 FY25 from 14.3% in Q4 FY24.
What challenges did Hyundai face during FY25?
Hyundai faced global and macroeconomic challenges but managed to maintain strong sales figures.
