LG Electronics India Profit Soars 46% in FY25

New Delhi, Oct 9 (PTI) LG Electronics India's profit surged 45.8 per cent to Rs 2,203.35 crore in FY25, and its revenue from operations was up 14.1 per cent to Rs 24,366.64 crore, according to the latest RoC filing by the appliances and consumer electronics major.

The company, which is in the listing process on exchanges, reported a post-tax profit of Rs 1,511.07 crore and revenue from operations of Rs 21,352 crore for the financial year ended March 31, 2024.

LG Electronics India (LGEI)'s total income in FY25, including other income, rose 14.25 per cent to Rs 24,630.63 crore, according to the financial data accessed by the business intelligence platform Tofler.

The company's pre-tax profit rose 45.5 per cent in FY25. The South Korea-based parent entity LG Electronics is selling a 15 per cent stake through Offer for Sale (OFS) in LGEI's Initial Public Offering (IPO).

LGEI's Advertising promotional expenses increased 7.27 per cent to Rs 1,009.12 crore in FY25, from Rs 940.71 crore in FY24.

The total tax expense of LGEI in FY25 rose 44.42 per cent to Rs 759.76 crore as against Rs 526.05 crore a year ago.

Moreover, the 'cost royalty' paid by LGEI to its parent entity under the license agreement rose 12.74 per cent to Rs 454.61 crore in FY25, from Rs 403.23 crore a year ago.

LG Electronics India's total expenses increased 11 per cent in FY25 to Rs 21,667.52 crore. According to its latest filing, the refrigerator business led the company's revenue, contributing Rs 6,696.45 crore, or 27.48 per cent of LGEI's total turnover.

This was followed by air conditioners at Rs 5,270.82 crore (21.63 per cent), washing machines at Rs 5,041.70 crore (20.69 per cent), and LED/LCD televisions at Rs 4,924.81 crore (20.21 per cent). In FY25, LG Electronics India earned Rs 1,451.2 crore in foreign exchange from exports, while its imports amounted to Rs 9,323.1 crore, it said.

LG Electronics India has to pay royalties to its South Korean-based parent firm, LG Electronics Inc., for the use of technology and brand name as per the license agreement.

This is the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd in October last year.