LG Electronics India's profit soars 46% to ₹2,203cr in FY25
What's the story
LG Electronics India has reported a whopping 45.8% increase in its profit for the financial year ending March 31, 2025. The company's post-tax profit stood at ₹2,203.35 crore, according to a recent filing with the Registrar of Companies (RoC). The appliances and consumer electronics giant also saw its revenue from operations grow by a healthy 14.1% to ₹24,366.64 crore during the same period.
Market move
LG Electronics to divest 15% stake in India unit
As part of its market strategy, the South Korea-based parent company LG Electronics is divesting a 15% stake in LG Electronics India through an Offer for Sale (OFS) in its ongoing Initial Public Offering (IPO). This move comes as the second instance of a South Korean company tapping into the Indian stock market after Hyundai Motors India Ltd's listing last October.
Financial obligations
Advertising expenses up by over 7%
LG Electronics India's total expenses also witnessed a rise of 11% in FY25, amounting to ₹21,667.52 crore. The company's advertising promotional expenses increased by 7.27% to ₹1,009.12 crore during the fiscal year under review. Its total tax expense also jumped by 44.42% to ₹759.76 crore as against ₹526.05 crore a year ago period.
Licensing fees
Cost royalties paid to parent firm
Under a license agreement, LG Electronics India pays royalties to its South Korean-based parent firm, LG Electronics Inc., for the use of technology and brand name. These 'cost royalties' paid by LG Electronics India to its parent entity also rose by 12.74% in FY25, amounting to ₹454.61 crore as against ₹403.23 crore a year ago period.