3M India Q4 results: PAT increases 27% to 173 cr, revenue up by 19%

3M India reported a 27% rise in quarterly profit on Tuesday aided by strong demand in its healthcare equipment, as well as transportation and electronics segments.

Shares of the company, which makes everything from 'Scotch' tape and 'Post-it' notes to power tools and medical products, rose as much as 11.8% to 34,599 rupees, their highest in nearly four months.

Consolidated profit after tax rose to Rs 173 crore ($20.8 million) in the quarter ended March 31 from Rs 136 crore an year ago.

3M India, the Indian arm of the U.S.-based 3M Co, said its healthcare segment, which makes surgical supplies and medical component tapes, saw a 19% rise in revenue.

Demand for medical equipments has risen in India with a rise in the need for healthcare for a rising population. 3M also saw strong demand in its transportation and electronics segment, which houses products including automotive parts, lighting needs and wires and cables.
 

Demand for private and commercial vehicles grew during the quarter, benefiting companies like 3M. Revenue from the segment, which contributes 41% to the revenue mix, grew nearly 4% to Rs 451 crore.

3M's total revenue was further boosted as it has been benefiting from steady price increases across products including adhesives and office supplies.

Revenue from operations for saw a near 5% uptick to Rs 1,095 crore, while earnings before interest, tax, depreciation and amortization (EBITDA) expanded to Rs 245 crore from Rs 204 crore an year ago.

Additionally, the company announced a dividend of 160 rupees per share and a special dividend of 525 rupees per share.

U.S. based 3M Co had posted a better-than-expected profit in the March-quarter on higher sales in its electronics unit.