Hyundai Motor India
Hyundai Motor Q1 Results: Hyundai Motor India’s cars have a different charm in India. But, the time from April to June this year was a bit heavy for the company. On July 30, the company announced its quarterly results, seeing which the market was surprised for a moment. The company’s profit has fallen by 35 percent. But the interesting thing is that despite such a huge loss, the company’s shares were bought heavily in the stock market.
35 percent decline in profits
Talking directly about money, Hyundai’s total profit has come down to Rs 889 crore in this June quarter. At the same time last year, the company had earned a profit of Rs 1,369 crore. That means a straight decline of 35 percent. The total revenue of the company also decreased marginally to Rs 16,334 crore. Working profit i.e. EBITDA has also fallen by 31 percent to Rs 1,511.7 crore.
A fire caused a big break
The biggest reason behind the decline in profits was a fire. Actually, there was a sudden fire in the factory of a company supplying parts to Hyundai. Due to this, the production of Hyundai cars stopped and in the month of June alone, about 13,900 less vehicles were produced. When vehicles are not made, how will they be sold and how will the profits be made? However, the good news is that after June 22, work has become completely normal again. The company hopes that this loss will be fully compensated in the months of July to September.
Craze for cars increased in India
Hyundai got its second blow from abroad. Due to the ongoing tensions and wars in the Middle East (West Asia), the company’s exports fell by almost 20 percent to 38,708 units. But, Indian customers gave great support to the company. Wholesale sales of Hyundai cars within the country increased by about 5.5 percent to 1,39,374 units. Even today people are buying SUVs like Creta, Venue, Exeter and cars like I-20 and Verna. Apart from this, the company’s electric cars also have a good hold in the market.
Shares ran up even after bad results
The stock market always looks at the picture of tomorrow, not today. On July 30, Hyundai shares closed at Rs 2,018.20, up 1.27 per cent. Behind this is the statement of the company’s MD and CEO Tarun Garg, which did not let the confidence of the investors break. He clearly said that now the production has become completely normal and the demand for vehicles in the market is very strong. The company will make a great comeback in the next quarter and will meet its growth target at any cost. Because of this confidence, investors bought shares.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
