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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Electronics' Indian subsidiary has posted its highest-ever first-quarter revenue and net profit, marking a significant milestone in the company’s global operations.
According to LG Electronics’ Q1 report released on May 15, the Indian unit recorded KRW 1.2428 trillion in revenue and KRW 124.3 billion in net profit for the first quarter of 2025. This marks the second consecutive year that quarterly revenue surpassed KRW 1 trillion, and the first time net profit exceeded KRW 100 billion.
In 2024, the Indian subsidiary reported annual revenue of KRW 3.791 trillion and net profit of KRW 331.8 billion, reflecting a 44% increase in revenue and a 70% rise in profit compared to 2021. Market analysts project that the unit may achieve KRW 4 trillion in revenue and KRW 400 billion in net profit by the end of this year.
LG Electronics is also weighing the timing of a potential IPO for its Indian subsidiary on the local stock exchange.
During the company’s Q1 earnings call, LG Electronics CFO Chang-tae Kim stated, “Our financial position is currently very stable, and performance in the Indian market continues to improve. Rather than rushing into an IPO, we plan to thoroughly evaluate factors such as fair market valuation and the optimal timing to maximize synergies from the listing.”
The company is also ramping up investment in its manufacturing infrastructure in India. Earlier this month, LG Electronics broke ground on its third plant in Sri City, Andhra Pradesh, with a KRW 840 billion (USD 600 million) investment. The new facility will have an annual production capacity of 800,000 refrigerators, 850,000 washing machines, and 1.5 million air conditioners. It is aimed at serving not only the Indian market but also the broader Global South, including the Middle East, Bangladesh, and Sri Lanka.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
