The Indian subsidiary of LG Electronics, which is preparing for listing on the Indian stock market, recorded its highest revenue and net profit in the first quarter of this year.
According to a first-quarter report released by LG Electronics on the 15th, the Indian subsidiary recorded revenue of 1.2428 trillion won and net profit of 124.3 billion won in the first quarter of this year. This is the highest level on record for the first quarter. Revenue exceeded 1 trillion won for the second consecutive year, and net profit surpassed 100 billion won for the first time.
LG Electronics continues to maintain an upward trend, recording annual sales of 3.791 trillion won and net profit of 331.8 billion won in India last year. Compared to 2021 (sales of 2.6255 trillion won and net profit of 198.5 billion won), revenue increased by approximately 44%, and net profit rose by about 70%. There are also forecasts that this year it could achieve annual revenue of 4 trillion won and net profit of 400 billion won for the first time.
LG Electronics is currently weighing the timing for the local stock listing of its Indian subsidiary. It was initially observed that the listing could take place as early as this month; however, LG Electronics has stated that it is considering market volatility and intends to take sufficient time to review the situation.
Kim Chang-tae, Chief Financial Officer (CFO) of LG Electronics, explained during the first-quarter earnings conference call that they would decide after thoroughly reviewing factors such as the market conditions for securing the fair value of the Indian subsidiary and the timing when the major synergy effects from the listing can be maximized, rather than rushing into the listing.
Meanwhile, LG Electronics is making active investments to enhance its production capacity in the Indian market. Earlier this month, it began construction on its third local factory in Sri City, Andhra Pradesh, investing 840 billion won ($600 million) to respond to local premium appliance demand.