LG Electronics India Reports 27% Profit Drop Despite Steady Revenue Growth
LG Electronics India's latest quarterly results show a 1% increase in revenue to ₹6,174.00 crore, but a significant decline in profitability. Net profit fell by 27.3% to ₹389.00 crore, while EBITDA decreased by 27.7% to ₹547.50 crore. The EBITDA margin contracted by 3.5 percentage points to 8.9%. Despite the profit decline, the company maintains strong market positions in key product categories and has outlined future growth initiatives, including manufacturing expansion and increased focus on exports and commercial solutions.

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LG Electronics India has released its latest quarterly results, showing a mixed performance with revenue growth but a significant decline in profitability.
Financial Performance
LG Electronics India's quarterly results reveal:
| Metric | Value | Year-over-Year Change |
|---|---|---|
| Revenue | ₹6,174.00 crore | +1% |
| EBITDA | ₹547.50 crore | -27.7% |
| EBITDA Margin | 8.9% | -3.5 percentage points |
| Net Profit | ₹389.00 crore | -27.3% |
Despite a slight increase in revenue from ₹6,113.80 crore to ₹6,174.00 crore, the company experienced a significant decline in profitability metrics. Net profit fell from ₹536.00 crore to ₹389.00 crore, while EBITDA decreased from ₹757.40 crore to ₹547.50 crore.
Market Performance
The results came weeks after the company's Initial Public Offering (IPO), which saw a strong market debut:
- Shares listed at a 50% premium to the issue price of ₹1,140.00
- Debut price: ₹1,710.00 on NSE and ₹1,715.00 on BSE
- Shares closed at ₹1,672.00 ahead of the earnings announcement, up 0.89% on NSE
Previous Financial Highlights
Prior to this report, LG Electronics India had demonstrated strong financial performance:
| Metric | Value | Change |
|---|---|---|
| Revenue | ₹24,631.00 crore | +14% |
| Profit | ₹2,203.00 crore | +46% |
| EBITDA Margin | 12.80% | - |
| PAT Margin | 9.00% | - |
| ROCE | 43.00% | - |
| ROE | 37.00% | - |
The company has maintained its status as a debt-free entity, which continues to strengthen its financial position.
Market Leadership and Segment Performance
LG Electronics India holds leading positions in several key product categories:
- Washing Machines
- Refrigerators
- Air Conditioners
- Televisions
The home appliances segment, which contributes 75% of the company's revenue, has shown strong growth:
| Segment | Growth |
|---|---|
| Home Appliances | 14.00% |
| Air Conditioners | 22.60% |
Future Plans and Growth Drivers
Despite the recent decline in profitability, LG Electronics India has outlined several initiatives for future growth:
- Manufacturing Expansion: Plans to establish a ₹5,000.00 crore manufacturing facility in Andhra Pradesh.
- Export Focus: Expecting growth from increased export activities.
- Commercial Solutions: Expanding into the commercial sector.
- Maintenance Contracts: Leveraging after-sales services for additional revenue streams.
Analyst Outlook
Prior to the latest results, brokerages had expressed positive sentiments towards LG Electronics India:
| Brokerage | Rating | Target Price |
|---|---|---|
| PL Capital | Buy | ₹1,780.00 |
| Emkay Global | Buy | ₹2,050.00 |
However, these outlooks may be subject to revision following the latest financial results.
As LG Electronics India navigates through a challenging quarter, investors and market watchers will be closely monitoring the company's performance and future outlook. The latest results provide valuable insights into the company's performance and may offer clues about its trajectory in the competitive Indian consumer electronics market. The company's ability to maintain revenue growth while addressing profitability concerns will likely be a key focus in the coming quarters.
Historical Stock Returns for LG Electronics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.73% | +0.25% | -1.33% | -3.65% | -3.65% | -3.65% |




























