New Delhi: Hyundai Motor India on Wednesday reported an 8 per cent decline in its consolidated net profit to Rs 1,369 crore for the first quarter ended June 30, hit by lower sales in the domestic market.
The auto major posted a net profit of Rs 1,490 crore in the April-June quarter of the last fiscal.
Total income declined to Rs 16,628 crore for the June quarter against Rs 17,568 crore in the year-ago period.
The company's overall sales during the first quarter stood at 1,80,399 units, a 6 per cent drop as compared with 1,92,055 units in the same period last year.
Domestic sales declined 11 per cent to 1,32,259 units in the June quarter as compared with 1,49,455 units in the April-June period of last year.
"Talking about the domestic sales performance during the quarter, the prolonged softness in demand continued to weigh on the overall industry sentiments driven by persistent macro-challenges and further intensified by the uncertain global environment," Hyundai Motor India Managing Director Unsoo Kim said in a virtual press meet.
He noted that in these challenging times, the company continues to remain agile and focused on advancing its core areas, such as enhancing brand presence, periodic product updates, expanding sales footprint and a consistent drive to enhance rural presence.
"Moving forward, we anticipate gradual recovery in domestic demand sentiments, driven by onset of monsoon & festive season coupled with government policy measures, while on the exports front, we are confident to maintain a positive momentum, in line with our growth commitments," Kim stated.
Elaborating on exports, he noted that the company achieved a growth of 3 per cent in volumes during the quarter, underscoring the automaker's positioning as a manufacturing hub for emerging markets.
Kim noted that Hyundai has commenced engine production at its Pune plant with an installed capacity of 1.5 lakh units.
"This new facility will support both our Pune and Chennai operations, thereby enhancing efficiency and ensuring smooth scaling of production," he stated.
The company noted that highet discounts impacted margins on a year-on-year basis and were minimised by better model mix, higher export contribution and cost reduction efforts.
Hyundai Motor India COO Tarun Garg said the SUVs accounted for around 68 per cent of the company's overall sales in the June quarter.
He noted that the company's penetration crossed all time high mark of 23 per cent in the April-June period.
He added that the CNG contribution to overall sales touched 16 per cent during the first quarter.
Garg said that festive period sales and rate cuts are expected to boost demand going ahead.
He noted that the company will launch 6 EVs by 2030 and is also investing in setting up charging infrastructure.
Shares of the company ended 0.76 per cent down at Rs 2,084.95 apiece on BSE.
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