Hyundai Motor India’s stock experienced a sharp decline of around 5% following the announcement of weaker-than-expected Q2 FY24 financial results. The dip in share prices reflects investor concerns over the company’s performance during the quarter.
Key Factors Behind Weak Q2 Performance:
- Slower Domestic Sales Growth: Hyundai, a leading player in the Indian automotive market, witnessed slower sales growth in the domestic segment due to a competitive landscape and demand fluctuations in the entry-level and mid-segment cars.
- Rising Input Costs: Elevated raw material costs and supply chain challenges have exerted pressure on margins, leading to a drop in profitability. This is despite the company’s efforts to control costs through various efficiency measures.
- Lower-than-Expected Export Numbers: While Hyundai has been strong in export markets, Q2 saw softer demand in certain regions, which impacted overall revenue growth. Export headwinds due to macroeconomic factors in key markets might have contributed to the slowdown.