'Post-it' maker 3M India's Q2 profit jumps on steady demand

3M India

10/11/2023 10:55

BENGALURU, Nov 10 (Reuters) - 'Post-it' notes maker 3M
India  TMIN.NS  reported a near 38% jump in its second-quarter
profit on Friday, helped by sustained demand for its products.
    Consolidated profit after tax came in at 1.46 billion rupees
($17.51 million) for the quarter ended Sept. 30, compared with
1.06 billion rupees a year earlier, the Indian arm of U.S.-based
diversified manufacturer 3M Co  MMM.N  said in a filing.
    The Bengaluru-based company makes a host of products
including 'Scotch' tape, 'Post-it' notes, power tools, and
bandages. 
    It reported a more than 6% rise in revenue from operations
to 10.4 billion rupees, helped by a near 5% growth in the
transportation and electronics segment. 
    A revival in automotive production and increasing focus on
localised production of mobile phones has helped buoy demand for
the company's transportation and electronics products, analysts
have said.
    Its safety and industrial segment - which counts face
shields and construction hats in its lineup - grew more than 3%.
    Shares of 3M India, which have risen nearly 44% so far this
year, were up as much as 2.15% post results before closing 0.6%
lower. 
    On Friday, the company approved terms of arrangement with
four U.S. entities for licensed manufacturing, reselling and
distributorship of its healthcare business in India and Nepal.
    This comes after parent 3M Co spun off its healthcare
business in July 2022, while proposing to maintain the segment's
manufacturing and distribution operations in India through the
local unit.
     The agreements have an initial term of five years and will
become effective upon the spin-off's completion, expected during
the first half of 2024. 
           
($1 = 83.3719 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane
Venkatraman)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))