Hyundai Motor India Q2 Results: Revenue growth seen muted; higher discounts may weigh on margins

Shares of passenger vehicle manufacturer Hyundai Motor India Ltd. are trading lower on Thursday, October 30, ahead of their September quarter results announcement.

As per a CNBC-TV18 poll, the company's revenue growth is likely to be only 2% due to a decline in volumes on a year-on-year basis. Revenue, as per the poll, is seen at ₹17,532 crore.

For the September quarter, Hyundai Motor India's volumes declined 1% from last year, but increased 6% sequentially.

Net profit for the period may increase by 10% to ₹1,518 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) may increase by 8% year-on-year to ₹2,380 crore.

EBITDA margins may expand by 80 basis points to 13.6% from 12.8% last year. Margin expansion is likely to be kept in check due to higher discounts.

The higher discounts may also weigh on the company's realisations, but the impact could be partly offset due to the cost control measures taken by the company. Realisations are also likely to be aided by a SUV-skewed product mix.

Sales strategy for the EV portfolio, demand outlook, and new product timelines are some key aspects that the street would want clarity from the management.

Shares of Hyundai Motor India have given up early gains and are now trading 0.6% lower ahead of the earnings announcement at ₹2,343.9. At ₹27,870 crore, Hyundai Motor India remains India's biggest IPO till date.