Hyundai Motor India profit slumps 24% as rising costs bite

By Reuters News

- Hyundai Motor India HYUN.NS reported a nearly 24% profit fall for the second quarter on Wednesday, as rising prices of raw materials weighed.

The automaker reported profit after tax of 11.96 billion rupees ($125.65 million) in the quarter ended September 30, compared to 15.72 billion rupees in the year-ago quarter.

Here are more details:

  • Expenses during the period rose 24% to 193.02 billion rupees, led by the cost of materials consumed

  • Total revenue from operations rose to 206.96 billion rupees from 174.61 billion rupees.

  • Demand remained resilient as a tailwind from last year's favourable tax cuts continued to boost sales.

  • Shares of the company were up 1.3% at 1,886.7 rupees, as of 3 p.m. IST

  • Indian automakers have struggled with rising prices of raw materials like steel and copper, triggered by the Middle East crisis this year.

  • Automakers will face tougher year-on-year comparisons in the second half after tax cuts lifted vehicle demand in the corresponding period last year, analysts say

  • Hyundai India's results come after peer Maruti Suzuki MRTI.NS reported a smaller-than-expected quarterly profit on Tuesday

($1 = 95.1875 Indian rupees)

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