Hyundai Motor India recorded a 6.6% decline in its net profit at Rs 1,035.04 crore for the financial year 2014-15, mainly due to higher outgo on account of royalty payments and depreciation. The second-largest car-maker in India saw its total income increase by 7.87% to Rs 27421.4 crore during the period.
According to the company’s filing with the Registrar of Companies, the total expenses stood 8.9% higher at Rs 25,925.1 crore with depreciation expenses and cost royalty surging 25.94% and 39.42%, respectively. Depreciation expense stood at Rs 1,083.7 crore compared to Rs 8,604.9 crore in the previous year while cost royalty was Rs 644.2 crore against Rs 462 crore. Input cost went up 6.4% to Rs 21,951.8 crore compared to Rs 20,627.1 crore last year.
Interest expenses too shot up by 43.9% to Rs 21.9 crore, while expense on advertising and promotion went up 3.4% to Rs 436.9 crore.
In the year 2014-15, Hyundai Motor India had recorded a growth of 10.63% in domestic sales of passenger vehicles with the sale of 420,668 units. In the same period, the Indian automobile industry saw a growth of 3.9%. Hyundai’s domestic market share for the financial year 2014-15 improved to 16.17% from 15.18% in the previous year.
Hyundai’s exports in 2014-15 stood at 191,221 units, which was a fall of 18.02%.
While the the overall total sales volume for the company declined by 0.2% from 6.13 lakh to 6.12 lakh units, revenue grew by 7.9% from Rs 25,420 crore to Rs 27,421 crore. The domestic sales, net of discounts increased from Rs 16359.6 crore to Rs 19,117.9 crore during the year, the directors report of the company said. The launch of new models like Elite i20, IB Active, 4S Fludic Verna and Elantra Facelift contributed to the increase in the total revenue, the directors report said.