For
the quarter ending June 2023, consolidated Net sales (including other operating income) of 3M India has increased 11.24% to Rs 1049.66 crore compared to quarter ended June 2022. Sales of Safety & Industrial segment has gone up 5.70% to Rs 328.94 crore (accounting for 31.34% of total sales). Sales of Transportation & Electronics segment has gone up 12.73% to Rs 413.04 crore (accounting for 39.35% of total sales). Sales of Health Care segment rose 27.28% to Rs 199.07 crore (accounting for 18.97% of total sales). Sales of Consumer segment has gone up 3.88% to Rs 105.27 crore (accounting for 10.03% of total sales). Sales of Others segment has gone down 59.42% to Rs 3.34 crore (accounting for 0.32% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 55.66% to Rs 159.05 crore. PBIT of Safety & Industrial segment rose 41.33% to Rs 32.20 crore (accounting for 20.25% of total PBIT). PBIT of Transportation & Electronics segment rose 151.22% to Rs 87.39 crore (accounting for 54.95% of total PBIT). PBIT of Health Care segment fell 4.24% to Rs 19.12 crore (accounting for 12.02% of total PBIT). PBIT of Consumer segment fell 4.74% to Rs 19.65 crore (accounting for 12.35% of total PBIT). PBIT of Others segment fell 82.93% to Rs 0.69 crore (accounting for 0.43% of total PBIT).
PBIT margin of Safety & Industrial segment rose from 7.32% to 9.79%. PBIT margin of Transportation & Electronics segment rose from 9.49% to 21.16%. PBIT margin of Health Care segment fell from 12.77% to 9.60%. PBIT margin of Consumer segment fell from 20.35% to 18.66%. PBIT margin of Others segment fell from 48.76% to 20.51%. Overall PBIT margin rose from 10.83% to 15.15%.
Operating profit margin has jumped from 12.34% to 16.48%, leading to 48.53% rise in operating profit to Rs 172.98 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.24% to 40.12%. Purchase of finished goods cost rose from 21.30% to 21.31%. Employee cost decreased from 10.27% to 10.16%. Other expenses fell from 12.59% to 12.22%. Other income rose 32.37% to Rs 15.17 crore. PBIDT rose 47.08% to Rs 188.15 crore. Provision for interest rose 77.78% to Rs 0.96 crore.
PBDT rose 46.95% to Rs 187.19 crore. Provision for depreciation fell 2.45% to Rs 13.93 crore.
Profit before tax grew 53.19% to Rs 173.26 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 44.05 crore, compared to Rs 28.84 crore. Effective tax rate was 25.42% compared to 25.50%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 53.35% to Rs 129.21 crore. Promoters’ stake was 75.00% as of 30 June 2023 ,compared to 75.00% as of 30 June 2022 .
Full year results analysis.
Net sales (including other operating income) of 3M India has increased 18.69% to Rs 3959.37 crore. Sales of Safety & Industrial segment has gone up 9.02% to Rs 1,301.28 crore (accounting for 32.87% of total sales). Sales of Transportation & Electronics segment has gone up 33.62% to Rs 1,569.04 crore (accounting for 39.63% of total sales). Sales of Health Care segment rose 18.60% to Rs 654.81 crore (accounting for 16.54% of total sales). Sales of Consumer segment has gone up 5.73% to Rs 409.68 crore (accounting for 10.35% of total sales). Sales of Others segment has gone down 13.31% to Rs 24.57 crore (accounting for 0.62% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 63.60% to Rs 546.61 crore. PBIT of Safety & Industrial segment rose 60.68% to Rs 136.65 crore (accounting for 25.00% of total PBIT). PBIT of Transportation & Electronics segment rose 160.41% to Rs 236.91 crore (accounting for 43.34% of total PBIT). PBIT of Health Care segment rose 18.04% to Rs 80.17 crore (accounting for 14.67% of total PBIT). PBIT of Consumer segment rose 6.93% to Rs 82.78 crore (accounting for 15.14% of total PBIT). PBIT of Others segment fell 20.87% to Rs 10.10 crore (accounting for 1.85% of total PBIT).
PBIT margin of Safety & Industrial segment rose from 7.12% to 10.50%. PBIT margin of Transportation & Electronics segment rose from 7.75% to 15.10%. PBIT margin of Health Care segment fell from 12.30% to 12.24%. PBIT margin of Consumer segment rose from 19.98% to 20.21%. PBIT margin of Others segment fell from 45.05% to 41.12%. Overall PBIT margin rose from 10.02% to 13.81%.
Operating profit margin has jumped from 11.67% to 15.26%, leading to 55.25% rise in operating profit to Rs 604.29 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 41.99% to 40.74%. Purchase of finished goods cost rose from 20.87% to 21.90%. Employee cost decreased from 11.58% to 9.98%. Other expenses fell from 13.95% to 12.32%. Other income rose 83.46% to Rs 68.1 crore. PBIDT rose 57.70% to Rs 672.39 crore. Provision for interest rose 95.43% to Rs 7.27 crore. Loan funds rose to Rs 26.75 crore as of 31 March 2023 from Rs 24.57 crore as of 31 March 2022. Inventories rose to Rs 610.74 crore as of 31 March 2023 from Rs 489.58 crore as of 31 March 2022. Sundry debtors were higher at Rs 635.04 crore as of 31 March 2023 compared to Rs 527.77 crore as of 31 March 2022. Cash and bank balance declined from Rs 1,327.86 crore as of 31 March 2022 to Rs 800.66 crore as of 31 March 2023.
PBDT rose 57.37% to Rs 665.12 crore. Provision for depreciation rose 4.64% to Rs 57.68 crore. Fixed assets increased to Rs 362.23 crore as of 31 March 2023 from Rs 329.82 crore as of 31 March 2022. Intangible assets declined from Rs 0.56 crore to Rs 0.31 crore.
Profit before tax grew 65.28% to Rs 607.44 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 156.42 crore, compared to Rs 95.55 crore. Effective tax rate was 25.75% compared to 26.00%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 65.83% to Rs 451.02 crore.
Equity capital stood at Rs 11.27 crore as of 31 March 2023 to Rs 11.27 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 75.00% as of 31 March 2023 ,compared to 75.00% as of 31 March 2022 .
Cash flow from operating activities increased to Rs 465.48 crore for year ended March 2023 from Rs 327.37 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 60.22 crore, compared to Rs 70.31 crore during the year ended March 2022.
Management Comments :
Mr. Ramesh Ramadurai, Managing Director of 3M India,
said “The Company delivered about 11% revenue growth
versus prior year. All Business segments delivered growth in the first quarter
versus prior year. Health Care led the growth at 27.3% and Transportation and
Electronics segment grew 12.7%. The Company delivered a 53% growth in Profit
Before Tax versus prior year, with PBT margin of 16.3%. Business trends were
steady with flat growth versus preceding sequential quarter. We continue to
monitor external trends and impact on our business, while serving our customers
efficiently”.