'Post-it' maker 3M India's March-qtr profit rises on strong demand

3M India

30/05/2023 10:08

BENGALURU, May 30 (Reuters) - 3M India  TMIN.NS 
reported a 24% rise in quarterly profit on Tuesday, aided by
robust demand in its transportation and electronics segment.
    Consolidated profit after tax rose to 1.36 billion rupees
($16.4 million) in the quarter ended March 31 from 1.11 billion
rupees a year earlier.
    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.
    Consolidated revenue from operations for the Indian arm of
the U.S.-based 3M Co  MMM.N  rose 13% to 10.46 billion rupees,
outpacing an 11.3% growth in total expenses to 8.72 billion
rupees.
    Revenue from its transportation and electronics business,
which makes power tools and cables, grew nearly 27% to 4.35
billion rupees, while profit more than doubled.
    The segment is the biggest contributor to the company's
revenue and profit, accounting for about 42% of overall revenue
this quarter.
    3M India said it has approved discussions and negotiations
related to the manufacturing and distributorship of healthcare
products with its U.S.-based sister firm 3M Health Care. 
    The Bangalore-based company's healthcare segment saw strong
revenue growth of 17.2% during the March quarter, while revenue
for its safety and industrial business grew 2.7%. 
    3M India's shares hit a 15-month high after the results,
rising as much as 3.5%. Shares have risen about 11% so far this
year, following a 10.3% decline in 2022.
        
  
($1 = 82.7426 Indian rupees)
   

 (Reporting by Biplob Kumar Das in Bengaluru; Editing by Janane
Venkatraman)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))