LG Electronics India has announced a significant financial performance for the fiscal year 2025, with a 45.8% increase in net profit, reaching ₹2,203.35 crore, and a 14.1% rise in revenue from operations to ₹24,366.64 crore. This robust growth precedes the company's Initial Public Offering (IPO), which has garnered substantial investor interest. The IPO aims to raise ₹11,607 crore, with a 15% stake being offered to the public. The strong financial results underscore LG Electronics India's position as a leading player in the consumer electronics sector.
Financial Performance Highlights
Net Profit: ₹2,203.35 crore, marking a 45.8% increase from the previous fiscal year.
Revenue from Operations: ₹24,366.64 crore, up 14.1% year-on-year.
Advertising and Promotional Expenses: ₹1,009.12 crore, a 7.27% rise from ₹940.71 crore in FY24.
Total Expenses: ₹21,667.52 crore, reflecting an 11% increase.
Tax Expense: ₹759.76 crore, a 44.42% increase from ₹526.05 crore in FY24.
Royalty Payments: ₹454.61 crore, up 12.74% from ₹403.23 crore in FY24.
Revenue Breakdown by Product Segment
Refrigerators: ₹6,696.45 crore (27.48% of total revenue)
Air Conditioners: ₹5,270.82 crore (21.63%)
Washing Machines: ₹5,041.70 crore (20.69%)
LED/LCD Televisions: ₹4,924.81 crore (20.21%)
These segments collectively contributed to the company's strong financial performance, with refrigerators leading as the top revenue-generating category.
IPO Details and Market Response
LG Electronics India's ₹11,607 crore IPO has attracted significant attention, with bids exceeding ₹4.4 trillion, making it the most subscribed large-cap issue since 2020. The IPO was fully subscribed on its first day, reflecting investor confidence. The share allotment is expected on October 10, with trading set to commence on October 14. The company aims to utilize the proceeds to strengthen its market presence and expand its product offerings.
Strategic Outlook
The impressive financial results and successful IPO underscore LG Electronics India's strategic initiatives to enhance operational efficiency and market competitiveness. The company's focus on innovation, quality, and customer satisfaction positions it well for sustained growth in the dynamic consumer electronics market.
Conclusion
LG Electronics India's robust financial performance in FY25, coupled with the successful IPO, highlights its strong market position and growth potential. The company's strategic focus on key product segments and operational excellence sets a solid foundation for continued success in the consumer electronics industry.
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