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Hyundai Motor Q1 profit plunges 35% on production woes, West Asia conflict
Hyundai Motor Q1 profit plunges 35% on production woes, West Asia conflict
Hyundai Motor India Ltd reported a 35% year-on-year drop in consolidated net profit to Rs 888.6 crore for the first quarter of FY27, hit by temporary production disruptions and the West Asia…
The Story in Brief
Hyundai Motor India Ltd reported a 35% year-on-year drop in consolidated net profit to Rs 888.6 crore for the first quarter of FY27, hit by temporary production disruptions and the West Asia conflict. Revenue slipped marginally to Rs 16,335 crore from Rs 16,413 crore a year earlier.
Domestic volume growth was limited to 5.4%, while exports suffered from the ongoing conflict in West Asia. Hyundai's managing director Tarun Garg called the quarter challenging but expects a recovery from Q2 onwards, citing normalised production, healthy demand, and new product launches. The company reiterated its full-year guidance of 8-10% volume growth and an EBITDA margin of 11-14%.
The Indian Opinion
The usual chorus about Hyundai losing its edge will likely grow louder after this profit drop, but the company's own explanation, temporary production snags and an external conflict, deserves a fair hearing. If the promised recovery from Q2 does not materialise, then the narrative of a deeper slowdown might stick. The real test will be the full-year EBITDA margin: can Hyundai deliver on the 11-14% range despite the headwinds? Wait for Q2 numbers before writing off the company.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
