LG Electronics Q2 Profit Jumps 25.7% To ₹489 Crore, Shares Surge Nearly 7% To ₹1,807 As Market Cap Crosses ₹1.22 Lakh Crore
· Free Press Journal
Mumbai: LG Electronics India delivered strong financial results for the second quarter of FY27, reporting double-digit growth in revenue and net profit. The company's earnings exceeded market expectations, triggering buying interest in its shares.
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The stock surged 6.76 percent to Rs 1,807 during Thursday's trading session, taking the company's market capitalisation to approximately Rs 1.23 lakh crore.
Here are five major highlights from LG Electronics India's September quarter performance.
Revenue Beats Expectations
LG Electronics reported revenue of Rs 7,380 crore in Q2 FY27, compared with Rs 6,174 crore in the corresponding quarter last year.
This represents year-on-year growth of 19.5 percent.
The revenue figure exceeded the CNBC-TV18 poll estimate of Rs 7,069 crore by Rs 311 crore, indicating stronger-than-expected business performance.
Net Profit Surges 25.7 percent
The company's profit after tax (PAT) jumped 25.7 percent to Rs 489 crore from Rs 389 crore in the year-ago period.
The reported profit also marginally exceeded analysts' expectations of Rs 486 crore.
Stock Market Today: Sensex Soars Nearly 1,500 Points & Nifty Jumps 430 Points, Here Are 5 Reasons Behind The Massive RallyThe increase in profitability came alongside higher revenue and improved operating margins.
EBITDA Climbs Nearly 28 percent
LG Electronics recorded EBITDA of Rs 701 crore during the September quarter, compared with Rs 548 crore a year earlier.
This translates into annual growth of 27.9 percent, reflecting improved operating earnings.
Operating Margin Expands
The company's EBITDA margin improved to 9.5 percent from 8.9 percent last year.
The 60-basis-point expansion also exceeded the market estimate of 9.4 percent.
Higher margins indicate that the company generated more operating earnings from every rupee of revenue.
Share Price Jumps Nearly 7 percent
LG Electronics shares opened at Rs 1,711 against the previous closing price of Rs 1,692.10.
Bulls Tighten Their Grip On D-Street, Sensex Zooms Over 600 Points To 76,358 And Nifty Crosses 23,600 As Strong Q2 Earnings And Cheaper Crude Lift MarketsThe stock subsequently rallied to Rs 1,807, gaining 6.76 percent, according to market data at 1:36 pm on November 5.
The company's market capitalisation reached Rs 1,22,671 crore, while its reported high and low stood at Rs 1,829 and Rs 1,300, respectively.
The stock's price-to-earnings ratio stood at 67.2, with return on equity at 24.7 percent.
The strong quarterly performance and sharp share-price rally brought renewed attention to LG Electronics India's earnings growth and valuation.