LG Electronic India FY24 revenue rises 7.5% to Rs 21,352 crore, profit grows 12.3% to Rs 1,511 crore

New Delhi: Leading appliance maker LG Electronics India reported a 12.35 per cent rise in profit to Rs 1,511.1 crore for FY24, and its revenue from operations grew 7.48 per cent to Rs 21,352 crore, according to financial data accessed by the business intelligence platform Tofler.

The company, which is not publicly listed, had posted a profit after tax at Rs 1,344.9 crore and its revenue from operations stood at Rs 19,864.6 crore for the financial year that ended in March, 2023.

LG Electronics India’s total income for FY24 increased 7.2 per cent to Rs 21,557.1 crore, while its revenue from other income sources registered a 16 per cent decline at Rs 205.1 crore.

The pre-tax profit of the company, a wholly-owned subsidiary of South Korea-based LG Electronics, increased by 11.9 per cent to Rs. 2,037.1 crore.

The total tax expense of LG Electronics India in FY24 rose by 11.36 per cent to Rs 526 crore as against Rs 472.3 crore a year ago.

LG Electronics India's total expenses increased 6.73 per cent in FY24 to Rs 19,520 crore as against Rs 18,288.3 crore in the previous year.

Its advertisement expenditure dropped by 4.6 per cent to Rs 254.8 crore, while spending on sales promotion increased 10.14 per cent to Rs 686 crore.

According to some media reports, its parent company and South Korea-based chaebol LG Electronics is gearing up for an Initial Public Offering (IPO) of its India business.

LG Electronics, is a formidable brand in India, operating in segments, including consumer electronics, home appliances, HVAC systems, and IT hardware.

Segment-wise, LG Electronics India's total revenue from the Home appliances and air solution division in FY24 stood at Rs 15,681.1 crore.

Under the home appliances and air solution division, it sells products such as - refrigerators, washing machines, cooking and cleaning, water purifiers, air purifiers, compressors and motors, ceiling fans, and air conditioners.

Its revenue from the home entertainment division stood at Rs 5,672.3 crore for the financial year that ended on March 31, 2024.

LG Electronics India's home entertainment division has products such as - televisions, audio systems, monitors, security camera, hotel televisions, personal computers, and optical disk drives.

During the year under review, LG Electronics India generated foreign exchange earnings of Rs 1,086.1 crore through exports.

"The Foreign Exchange outflow for Import of Goods & payment for services was Rs 8,654.4 crore & the Outflow on account of Royalty was Rs 375.5 crore," it said.

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