3M India posts smaller third-quarter profit as inflation pressures margins

3M India

07/02/2025 10:02

Feb 6 (Reuters) - Diversified products maker 3M India
 TMIN.NS  reported a 16% fall in its third-quarter profit on
Friday, as inflationary pressures pushed costs higher, hurting
margins.
    The company, whose products range from "Post-it" notes to
power tools, said its profit after tax fell to 1.14 billion
rupees ($13.05 million) for the quarter ended December 31,
compared to 1.35 billion rupees a year ago.
    India's consumer goods makers have grappled with high
inflation, which spiked to 6.21% in October and remained above
5% through December, driving up the cost of key raw materials.
        3M reported a 23% increase in the cost of raw materials
and a 13% rise in total expenses for the quarter. 
  
        The company's earnings before interest, tax,
depreciation, and amortization (EBITDA) margins contracted by
12% compared to the previous year, negatively impacting its
profitability.
  
    However, the Scotch-Brite scrub maker has continuously
raised prices across its product range in recent quarters to
counter inflationary pressures, which helped revenue to grow.
    It's transportation and electronics segment, which includes
automotive parts, lighting solutions, and wires and cables,
posted a 10% increase in revenue, driving the company's total
revenue up 8% to 10.9 billion rupees.
    3M India, the Indian arm of the U.S.-based industrial
conglomerate 3M  MMM.N , said its revenue from safety and
industrial segment, with products like face shields and
construction hats, posted a 1.4% revenue fall.
    Shares of the company fell 2% after posting results.
    


($1 = 87.3710 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Tasim Zahid)
 ((AshnaTeresa.Britto@thomsonreuters.com;))