Hyundai Motor India Q1 profit drops 35 pc amid higher costs
Mumbai, July 30
Hyundai Motor India Limited on Thursday reported a 35 per cent year-on-year decline in consolidated net profit for the June quarter of FY27.
The carmaker posted a net profit of Rs 889 crore for the first quarter ended June 30 (Q1 FY27), down from Rs 1,369 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
Tarun Garg, Managing Director & Chief Executive Officer said, "Q1 FY27 was a challenging quarter affected by multiple headwinds impacting volumes and profitability.
"With 100 per cent normalisation of production, coupled with healthy demand environment and upcoming product pipeline, recovery is likely to gain pace from Q2 onwards across both domestic and export businesses," Garg added.
The company's consolidated revenue from operations remained largely unchanged at Rs 16,335 crore, marginally lower than Rs 16,413 crore reported in the year-ago quarter.
Profit before tax declined 34.9 per cent to Rs 1,201.65 crore from Rs 1,847.20 crore a year earlier, while basic earnings per share fell to Rs 10.94 from Rs 16.85.
Operating performance also weakened during the quarter. EBITDA declined 31 per cent year-on-year to Rs 1,511 crore from Rs 2,186 crore, while EBITDA margin contracted to 9.3 per cent from 13.3 per cent in the corresponding quarter last financial year.
The company witnessed a broad-based increase in expenses during the quarter. Total expenses rose 4.2 per cent year-on-year to Rs 15,407.35 crore from Rs 14,780.47 crore.
The cost of materials consumed increased 0.5 per cent to Rs 11,894.76 crore, while employee benefit expenses surged 20 per cent to Rs 749.02 crore, it added in its filing.
Other expenses rose 10.6 per cent to Rs 2,213.98 crore and depreciation and amortisation expenses increased 5.5 per cent to Rs 557.10 crore.
Although other income grew 27.7 per cent to Rs 274.37 crore, the increase was insufficient to offset the impact of higher costs and subdued operating revenue.
Profitability ratios also weakened significantly. The profit-before-tax margin narrowed to 7.4 per cent from 11.3 per cent a year ago, while the net profit margin declined to 5.4 per cent from 8.3 per cent, indicating sustained pressure on earnings.
— IANS
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