Feb 11 (Reuters) — LG Electronics India reported a near 62% drop in third-quarter profit on Wednesday, hit by weaker performance in its home appliances and air solutions business amid soft demand for cooling appliances in Asia’s third-largest economy.
The Indian unit of South Korea’s LG Electronics posted a standalone profit of 896.7 million rupees ($9.89 million) for the quarter ended December 31, down from 2.33 billion rupees a year earlier. India remains one of LG Electronics’ key overseas markets, contributing 4.3% to its 2024 global revenue and an outsized share of profits, supported by strong margins, broad segment reach and an extensive distribution network, J.P. Morgan analysts said.Demand for room air conditioners remained subdued for most of the quarter as cooler-than-usual weather dampened sales, while elevated inventory levels at dealers curtailed fresh orders, analysts said.Revenue from the company’s home appliances and air solutions division fell 10% to 27.88 billion rupees, pushing overall revenue down 6% to 41.14 billion rupees.AC makers Voltas and Blue Star posted a drop in third-quarter profit, hurt by weakness in their cooling products segment and charges related to India’s new labour laws.
LG reported a 124.50 million rupee impact on its results from the labour code changes.The company’s revenue from the home entertainment segment rose nearly 2%. Shares of the company closed 1.5% lower on the day and are down 11% since listing in October.
($1 = 90.6910 Indian rupees)
(Reporting by Nishit Navin and Urvi Dugar in Bengaluru; Editing by Tasim Zahid)