Shares of LG Electronics India declined sharply by more than 7% after the company reported a weak set of standalone results for the third quarter, with revenue, EBITDA, margins, and net profit all witnessing a year-on-year decline.
The sharp fall in profitability weighed on investor sentiment, leading to significant selling pressure in the stock during trade.
Revenue Falls 6.4% YoY
LG Electronics India reported standalone revenue of ₹4,114 crore in Q3, compared to ₹4,396 crore in the same quarter last year. The 6.4% decline reflects softer demand conditions and margin pressures across segments.
EBITDA Drops 42.4%; Margins Contract
EBITDA for the quarter came in at ₹196 crore, sharply lower than ₹340 crore reported in the corresponding period last year. This marks a steep 42.4% year-on-year decline.
Operating performance also weakened considerably, with EBITDA margin falling to 4.8% from 7.7% in the year-ago quarter — a contraction of 290 basis points. The margin erosion indicates rising cost pressures and lower operating leverage during the quarter.
Net Profit Slides 61.6%
Net profit saw the sharpest decline among key financial metrics. The company posted a profit of ₹89.6 crore for Q3, down 61.6% from ₹233 crore reported in the same quarter last year.
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