3M India reported 87% surge in consolidated net profit to Rs 124.81 crore in Q3 FY23 as compared to Rs 66.74 crore in Q3 FY22.
Revenue from operations rose 20.18% year on year to Rs 993.03 crore in the quarter ended 31 December 2022.Profit before tax stood at Rs 167.34 crore in Q3 FY23, registering a growth of 88.06% on YoY basis.
EBITDA grew 78% to Rs 183 crore in Q3 FY23 as against Rs 103 crore posted in Q3 FY22.
During the quarter, total expense was at Rs 837.68 crore (up 12.44% YoY) and cost of raw material consumed stood at Rs 376.46 crore (up 15.36% YoY) while employee benefits expense was Rs 97.23 crore (down 5.32% YoY).
The company said that the cost headwinds and supply chain volatility continued to be a challenge.
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Ramesh Ramadurai, managing director of 3M India said, Transportation & Electronics segment led with 31% growth. Healthcare grew 20.5% and Safety & Industrial grew 16.1% during the quarter, versus prior year. Our teams continued to execute multiple actions, including pricing and mix management, to mitigate the impact of cost headwinds and supply chain challenges. These actions continued to yield steady results with PBT margin for the quarter improving to 16.7%.
Meanwhile, the company's board approved the changes to the Intellectual Property agreement with 3M Company USA and 3M Innovative Properties Company (3M IPC), for the provision of technology, intellectual property, products and services to 3M India. The royalty rates currently being paid have remained in place since 1 July 2009. The royalty fees payable will increase effective 1 April 2023 from 1.48% of sales turnover (Rs 44.5 crore in FY 21-22) to approximately 2.40% of turnover, based on FY 21-22 product mix.
3M India is a diversified company engaged in manufacturing of, and trading in, a wide variety of products catering to the industrial, transportation, automotive, construction, engineering, healthcare, traffic and safety, household, and office segments. Its operations are broadly classified under five business segments: safety & industrial, transportation & electronics, health care, consumer and others.
The scrip rose 0.93% to end at Rs 23,043.90 on the BSE.
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