'Post-it' maker 3M India's Dec-qtr profit spikes on strong demand

3M India

08/02/2023 10:29

BENGALURU, Feb 8 (Reuters) - 3M India Ltd  TMIN.NS 
reported an 87% jump in quarterly profit on Wednesday, partly
helped by strong demand in its transportation and electronics
business and price hikes.
    Consolidated profit increased to 1.25 billion rupees ($15.14
million) in the quarter ended Dec. 31, from 667.4 million rupees
a year earlier. Profit in the 'Other Income' category rose 55.9%
to 119.9 million rupees.  
    3M India, which makes everything from 'Scotch' tape and
'Post-it' notes to power tools and medical products, has been
raising prices to offset the hit from surging commodity costs.
    The consolidated revenue from operations for the Indian arm
of U.S.-based 3M Co  MMM.N  rose 20.2% to 9.93 billion rupees. 
    Revenue from its transportation and electronics business,
which makes power tools and cables, grew 31% to 3.94 billion
rupees, while profit almost doubled. The segment is the biggest
contributor to 3M India's revenue and profit.
    The safety and industrial business came in at a close
second, with revenue increasing 16.1% to 3.3 billion rupees and
profit rising by more than four times from a year earlier.
    The consumer business, 3M India's smallest, saw revenue
decrease marginally by 0.13% to 1.01 billion rupees. This is
also the only segment that did not grow year-on-year,
revenue-wise. 
    However, the Bangalore-based company's total expenses for
the quarter grew 12.4% to 8.38 billion rupees, biting into
profit.
    3M India's shares rose as much as 2.6% after the results.
Shares have risen 5.4% so far this year, following a 10.3%
decline in 2022.
($1 = 82.5680 Indian rupees)
 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Janane
Venkatraman)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))