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Hyundai India Profit Misses Estimates Amid Rising Costs
2 Feb
Summary
- Profit grew 6.4% to 12.34 billion rupees, missing expectations.
- Revenue surpassed estimates due to strong export performance.
- Costs for raw materials and employee benefits significantly increased.
Hyundai Motor India's third-quarter profit experienced a modest rise of 6.4%, reaching 12.34 billion rupees for the period ending December. This figure, however, did not meet analysts' projections. The company's overall expenses saw an 8% increase, with a notable 14.8% spike in raw material costs.
Despite these cost pressures, Hyundai India's revenue for the quarter outperformed expectations, standing at 179.73 billion rupees. This growth was largely propelled by a significant 21% increase in overseas shipments. In contrast, domestic sales remained stagnant due to intense market competition.
Employee benefits expenses also climbed by 15.2%, reflecting the impact of newly implemented labor codes in India. The company plans substantial investment, with approximately $5 billion earmarked to introduce 26 new models by 2030, aiming to enhance its market share.
