LG Electronics India shares rise as Q2 profit hits Rs 489 crore
The company reported a 25.7 per cent year-on-year rise in net profit and announced plans to enter the automotive sector.
LG Electronics India shares climbed 3.5 per cent to Rs 1,751 in late-morning trade on Thursday, according to Moneycontrol. The stock price increase followed the company reporting a 25.7 per cent year-on-year rise in net profit for the July-September quarter of FY27.
The company reported a net profit of Rs 489 crore for the quarter, up from Rs 389 crore in the same period last year. This figure was slightly higher than the CNBC-TV18 poll estimate of Rs 486 crore. Revenue from operations also rose 19.5 per cent year-on-year to Rs 7,380 crore, exceeding the CNBC-TV18 estimate of Rs 7,069 crore.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 27.9 per cent to Rs 701 crore, compared to Rs 548 crore a year earlier. The EBITDA margin expanded by 60 basis points to 9.5 per cent from 8.9 per cent in the corresponding quarter last year.
LG Electronics India also announced it has approved a proposal to enter a new Vehicle Solutions Business. This diversification into the automotive electronics and mobility solutions sector will involve manufacturing, assembling, importing, exporting, distributing, trading, and selling automotive technologies, products, and software.
The company stated the expansion aims to provide access to opportunities in connected vehicles, digital cockpits, and intelligent mobility solutions. The move is expected to help diversify its product portfolio and strengthen its presence in the automotive and mobility ecosystem in India.