In its latest review on August 21, CRISIL reaffirmed AAA/Stable for HMIL’s long-term facilities, indicating the highest degree of safety in servicing financial obligations, and A1+ for short-term instruments.
Crisil noted, “The reaffirmation reflects HMIL’s established position in the domestic and overseas passenger car market, and a robust financial risk profile with strong liquidity. The company also benefits from strong support provided by its parent, Hyundai Motor Company (HMC, rated ‘A-/Stable’ by S&P Global Ratings). These strengths are partially offset by exposure to intense competition in the domestic passenger vehicle industry and susceptibility to fluctuations in foreign exchange rates.”
Commenting on the reaffirmation, Wangdo Hur, Whole-time Director & Chief Financial Officer at HMIL, said the ratings validate the company’s commitment to financial prudence and long-term value creation.
The rating agency said HMIL’s capital expenditure in FY2025 was largely funded through available surpluses and annual cash generation. The company plans to maintain minimal debt while investing Rs 6,000–7,000 crore over the next two fiscals, with Rs 5,000–5,500 crore expected from annual cash accruals and the remainder from existing surpluses.
Cash surplus and bank balances stood at Rs 8,579 crore as of March 31, 2025, compared with Rs 9,017 crore a year earlier and Rs 17,741 crore as of March 31, 2023.
