3M India posts smallest profit growth in nine quarters as costs bite

3M India

08/02/2024 08:46

BENGALURU, Feb 8 (Reuters) - Diversified products maker
3M India  TMIN.NS  posted on Thursday its smallest profit growth
in nine quarters, as surging input costs countered sustained
demand for its core products.
    Consolidated profit after tax came increased more than 8%
from a year earlier to 1.35 billion rupees (about $16 million)
in the third quarter ended Dec. 31, the Indian unit of
U.S.-based industrial conglomerate 3M  MMM.N  said in an
exchange filing.
    Input costs rose 5.9% to 3.98 billion rupees, sending the
company's total expenses slightly higher.
    Sales increased at the mainstay safety & industrial and
transportation & electricals segments, which together account
for 69% to 74% of 3M India's total revenue, while the smaller
healthcare segment saw a fall in revenue.
    "Business trends broadly remained steady versus the previous
quarter, though some softness was observed in the healthcare
segment," Managing Director Ramesh Ramadurai said.
    Sustained infrastructure spending ahead of the 2024 general
elections has boosted demand for industrial products, helping
companies like 3M to make strong profits in the past year.
    Shares of 3M India, which gained more than 17% in the
December quarter, fell 1.2% after the results came.
    Last month, parent company 3M forecast full-year earnings
below estimates, saying the macro environment remained muted. 

($1 = 82.9950 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Subhranshu
Sahu)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))