Informist, Wednesday, Jul. 30, 2025

By Anand JC

NEW DELHI - Hyundai Motor India Ltd.'s top line growth for the June quarter will likely fall year-on-year due to poor wholesale sales in India and higher discounts, according to analysts. Similar to its despatches, analysts expect the company's net profit to fall year-on-year, marking the fourth consecutive quarter of contraction.

The Creta maker is expected to report a consolidated net profit of INR 12.7 billion for the reporting quarter, down 15% on year, according to an average of seven brokerages' view. Motilal Oswal Financial Services' expectation of INR 12.1 billion net profit is the lowest while YES Securities' (India) view of INR 13.5 billion is the highest.

Analysts expect Hyundai Motor's consolidated revenue to decline 2% on year in the latest quarter to INR 169.7 billion, mainly because of a fall in despatches. Nomura Equity Research's expectation of INR 165.8 billion revenue is the lowest and InCred Research Services' forecast of INR 180.4 billion is the highest.

The company sold 132,259 cars to dealerships in the June quarter, down nearly 12% on year, according to Society of Indian Automobile Manufacturers. Exports remained a bright spot for Hyundai Motor, as the company shipped 48,140 units overseas during this period, up 13% on year.

Passenger vehicle companies continued to offer higher discounts during the June quarter, which likely weighed on the company's margin, analysts said. Kotak Institutional Equities expects a fall in volumes and higher discounts to be offset by a 3% on-year increase in the average selling price of Hyundai Motor's cars. This would be because of higher sales of sport utility vehicles, which cost more than smaller cars, during the reporting quarter.

The company likely earned INR 921,147 per car sold during the latest quarter, up 2% on year, according to Motilal Oswal. This is lower than the INR 936,096 earned during the March quarter, but higher than the INR 903,085 realised during the base quarter, the firm said.

Consensus estimates suggest Hyundai Motor will report earnings before interest, tax, depreciation, and amortisation of INR 20.7 billion for the June quarter. EBITDA estimates of brokerages don't vary too widely – Nomura's expectation of INR 19.9 billion is the lowest, YES Securities' view of INR 21.8 billion is the highest.

Kotak and Motilal Oswal expect the automotive giant's EBITDA margin to fall 150 basis points on year to 12% during the June quarter due to negative operating leverage in addition to the higher discounts. Nomura expects a sharper 210-basis-point fall in its EBITDA margin because of higher raw material costs the company likely incurred during the quarter under review.

The company will disclose its June quarter financials on Wednesday. Its shares closed at INR 2,100.70 on the National Stock Exchange Tuesday, up 2.5%. The shares have risen 13% since May 16, when it reported its March quarter earnings.

Of the nine brokerage recommendations on the company available with Informist Media, seven have a buy call at an average of INR 2,144 per share. One brokerage has recommended holding the scrip while another has recommended selling it.

Following are the Apr-Jun earnings estimates for Hyundai Motor India based on reports from nine brokerages in descending order of the estimate of net profit:

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Edited by Vandana Hingorani

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