Hyundai Motor India Ltd. (HMIL) reported a 16% decline in net profit for the second quarter of FY25, totaling Rs 1,375 crore for the quarter ending September 30, 2024. Revenue for Q2FY25 also fell by 8%, reaching Rs 17,260 crore, signaling challenges in both domestic and export markets for the company.
In domestic sales, HMIL saw a 5.75% drop, with total units sold at 1,49,639 compared to 1,58,772 units in Q2FY24. This dip highlights ongoing market challenges, including competitive pressures and fluctuating consumer demand.
Following the earnings announcement on November 12, Hyundai shares on the Bombay Stock Exchange (BSE) traded 2% lower, priced at Rs 1,784.75 per share, reflecting investor concerns over the company’s performance.
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Context on Market Developments in India
The Indian automotive industry is navigating a complex landscape, reminiscent of the early 1990s, when liberalization policies reshaped India’s economy. This period of economic reform led to significant shifts, spurring new investment strategies within the stock market. Rajeev Garg, who was instrumental in evolving ASK Investments into a quant-driven firm during this transformative period, illustrates how adapting to market changes can help companies and investors stay resilient.