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Hyundai Motor India, a prominent player in the Indian automotive market, reported a 16% year-on-year decline in its profit after tax (PAT) for the second quarter of the fiscal year 2023-24. The company's PAT came in at Rs 1,375 crore for the quarter ending June 30, 2023, compared to Rs 1,641 crore in the corresponding period of the previous year. This decline in profitability can be attributed to a number of factors, including rising input costs, competitive market pressures, and a softening demand for passenger vehicles.
The company's revenue from operations also saw a slight dip, coming in at Rs 14,873 crore for the quarter, compared to Rs 15,243 crore in the same period last year. This represents a decline of around 2.4%. Despite the decline in profitability, Hyundai Motor India maintained its position as one of the leading car manufacturers in India. The company continues to invest heavily in new product development and technology, and remains committed to its growth in the Indian market. The company's strong brand image and wide network of dealerships continue to be key strengths in the market.
However, the decline in profitability has raised concerns among investors. Following the announcement of the Q2 results, shares of Hyundai Motor India fell by 1.45% on the National Stock Exchange of India. The company's share price has been under pressure in recent months due to a number of factors, including the slowdown in the Indian economy, the ongoing chip shortage, and the rising competition in the automotive market. While the company remains optimistic about the future of the Indian automotive market, it is facing a number of challenges in the coming months. These challenges include maintaining its market share in a competitive environment, navigating the ongoing chip shortage, and managing rising input costs.
Source: Hyundai Motor slides as Q2 PAT slips 16% YoY to Rs 1,375 cr