LG India Q2 Results: Profit Decline, Revenue Flat
- Published November 13, 2023, 16:06:33 IST | Updated November 13, 2023
- LG Electronics India is well-positioned to maintain a robust growth trajectory, fueled by a diversified product portfolio, a strong distribution network, and a premium brand image, according to...
- Analysts at PL Capital estimate a compound annual growth rate (CAGR) of around 10% for LG Electronics India in revenue, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA),...
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LG Electronics India Poised for Continued Growth, Analysts Predict
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Published November 13, 2023, 16:06:33 IST | Updated November 13, 2023
LG Electronics India is well-positioned to maintain a robust growth trajectory, fueled by a diversified product portfolio, a strong distribution network, and a premium brand image, according to recent analysis. The company’s performance is particularly strong in the home appliance and air conditioning segments.
Key Growth drivers
Analysts at PL Capital estimate a compound annual growth rate (CAGR) of around 10% for LG Electronics India in revenue, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), and Profit After Tax (PAT). This growth is expected to be driven by healthy expansion across all segments, increased production capacity, and a greater focus on after-sales service and business-to-business (B2B) operations.
The company’s home appliances and air solutions segment, which accounts for 75% of its revenue, has experienced an annual growth rate of nearly 14% between fiscal years 2022 and 2025. The room air conditioner (RAC) category has seen even more critically important expansion, growing at 22.6%, driven by increasing consumer demand for energy-efficient and AI-enabled products.
Market Opportunity in India
The overall appliances and electronics market in India (excluding mobile phones) is projected to grow at a CAGR of 13.8% to reach Rs 6.19 lakh crore by calendar year 2029, according to industry data. This ample growth indicates a significant opportunity for premium brands like LG to expand their market share.
| Market Segment | Projected CAGR (to CY29) | Estimated Market Size (CY29) |
|---|---|---|
| Appliances & Electronics (excl. mobile) | 13.8% | Rs 6.19 lakh crore |
Stock Performance
On Thursday, November 9, 2023, LG Electronics india shares closed nearly 1% higher at Rs 1,672 on the National Stock Exchange (NSE). Economic times provides detailed stock details and market updates.