LG Electronics India posts drop in second-quarter profit

LG Electronics India on Thursday reported a 27% fall in quarterly profit in its first results since listing, as consumers delayed purchases of electronics and home goods following recent tax cuts.

The company posted a standalone profit of 3.89 billion rupees ($44.26 million) for the quarter ended September 30, down from 5.36 billion rupees a year earlier.

Companies in India have faced weaker sales as consumers postponed spending until late September, when a broad-based consumption tax reduction came into effect, lowering prices on items ranging from soaps to electronic products.

LG Electronics India’s revenue from operations rose a marginal 1% to 61.74 billion rupees.

Shares of the company closed 1% higher on the day. They are down 2% since listing in October.