Capitaline

Results 08-Feb-23

Analysis

3M India

NP up 87.01%

For the quarter ending Dec 2022, consolidated Net sales (including other operating income) of 3M India has increased 20.18% to Rs 993.03 crore compared to quarter ended Dec 2021. Sales of Safety & Industrial segment has gone up 16.10% to Rs 329.54 crore (accounting for 33.18% of total sales). Sales of Transportation & Electronics segment has gone up 31.03% to Rs 393.83 crore (accounting for 39.66% of total sales). Sales of Health Care segment rose 20.45% to Rs 163.00 crore (accounting for 16.41% of total sales). Sales of Consumer segment has gone down 0.13% to Rs 100.84 crore (accounting for 10.15% of total sales). Sales of Others segment has gone up 4.25% to Rs 5.83 crore (accounting for 0.59% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 90.64% to Rs 155.93 crore. PBIT of Safety & Industrial segment rose 205.83% to Rs 48.69 crore (accounting for 31.22% of total PBIT). PBIT of Transportation & Electronics segment rose 98.38% to Rs 60.33 crore (accounting for 38.69% of total PBIT). PBIT of Health Care segment rose 89.08% to Rs 24.20 crore (accounting for 15.52% of total PBIT). PBIT of Consumer segment rose 11.36% to Rs 21.88 crore (accounting for 14.03% of total PBIT). PBIT of Others segment fell 72.52% to Rs 0.83 crore (accounting for 0.53% of total PBIT).

PBIT margin of Safety & Industrial segment rose from 5.61% to 14.77%. PBIT margin of Transportation & Electronics segment rose from 10.12% to 15.32%. PBIT margin of Health Care segment rose from 9.46% to 14.85%. PBIT margin of Consumer segment rose from 19.46% to 21.70%. PBIT margin of Others segment fell from 53.79% to 14.18%. Overall PBIT margin rose from 9.90% to 15.70%.

Operating profit margin has jumped from 11.55% to 17.18%, leading to 78.83% rise in operating profit to Rs 170.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 40.85% to 38.40%. Purchase of finished goods cost rose from 19.43% to 21.99%. Employee cost decreased from 12.86% to 9.92%. Other expenses fell from 14.91% to 12.28%.

Other income rose 55.92% to Rs 11.99 crore. PBIDT rose 77.12% to Rs 182.59 crore. Provision for interest rose 16.33% to Rs 0.57 crore.

PBDT rose 77.41% to Rs 182.02 crore. Provision for depreciation rose 7.78% to Rs 14.68 crore.

Profit before tax grew 88.06% to Rs 167.34 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 42.53 crore, compared to Rs 22.24 crore. Effective tax rate was 25.42% compared to 24.99%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 87.01% to Rs 124.81 crore.

Promoters’ stake was 75.00% as of 31 December 2022 ,compared to 75.00% as of 31 December 2021 .

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of 3M India has increased 20.87% to Rs 2913.33 crore. Sales of Safety & Industrial segment has gone up 11.43% to Rs 962.61 crore (accounting for 33.04% of total sales). Sales of Transportation & Electronics segment has gone up 36.54% to Rs 1,133.66 crore (accounting for 38.91% of total sales). Sales of Health Care segment rose 19.13% to Rs 481.59 crore (accounting for 16.53% of total sales). Sales of Consumer segment has gone up 8.81% to Rs 314.15 crore (accounting for 10.78% of total sales). Sales of Others segment has gone down 7.61% to Rs 21.32 crore (accounting for 0.73% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 89.10% to Rs 366.42 crore. PBIT of Safety & Industrial segment rose 138.62% to Rs 91.59 crore (accounting for 25.00% of total PBIT). PBIT of Transportation & Electronics segment rose 192.59% to Rs 137.32 crore (accounting for 37.48% of total PBIT). PBIT of Health Care segment rose 48.39% to Rs 62.95 crore (accounting for 17.18% of total PBIT). PBIT of Consumer segment rose 17.40% to Rs 65.67 crore (accounting for 17.92% of total PBIT). PBIT of Others segment fell 11.93% to Rs 8.89 crore (accounting for 2.43% of total PBIT).

PBIT margin of Safety & Industrial segment rose from 4.44% to 9.51%. PBIT margin of Transportation & Electronics segment rose from 5.65% to 12.11%. PBIT margin of Health Care segment rose from 10.49% to 13.07%. PBIT margin of Consumer segment rose from 19.37% to 20.90%. PBIT margin of Others segment fell from 43.73% to 41.69%. Overall PBIT margin rose from 8.04% to 12.58%.

Operating profit margin has jumped from 9.77% to 14.07%, leading to 74.10% rise in operating profit to Rs 409.99 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 42.35% to 41.72%. Purchase of finished goods cost rose from 20.97% to 21.44%. Employee cost decreased from 12.41% to 10.25%. Other expenses fell from 14.52% to 12.71%.

Other income rose 141.39% to Rs 58.2 crore. PBIDT rose 80.35% to Rs 468.19 crore. Provision for interest fell 15.82% to Rs 1.49 crore.

PBDT rose 81.01% to Rs 466.7 crore. Provision for depreciation rose 4.43% to Rs 43.57 crore.

Profit before tax grew 95.79% to Rs 423.13 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 107.83 crore, compared to Rs 55.05 crore. Effective tax rate was 25.48% compared to 25.47%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 95.77% to Rs 315.30 crore.

Promoters’ stake was 75.00% as of 31 December 2022 ,compared to 75.00% as of 31 December 2021 .

Full year results analysis.

Net sales (including other operating income) of 3M India has increased 28.06% to Rs 3335.84 crore. Sales of Safety & Industrial segment has gone up 17.89% to Rs 1,193.66 crore (accounting for 35.78% of total sales). Sales of Transportation & Electronics segment has gone up 31.89% to Rs 1,174.23 crore (accounting for 35.20% of total sales). Sales of Health Care segment rose 52.52% to Rs 552.12 crore (accounting for 16.55% of total sales). Sales of Consumer segment has gone up 23.85% to Rs 387.49 crore (accounting for 11.62% of total sales). Sales of Others segment has gone up 4.46% to Rs 28.34 crore (accounting for 0.85% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 69.06% to Rs 334.12 crore. PBIT of Safety & Industrial segment fell 18.17% to Rs 85.04 crore (accounting for 25.45% of total PBIT). PBIT of Transportation & Electronics segment rose 541.15% to Rs 90.98 crore (accounting for 27.23% of total PBIT). PBIT of Health Care segment rose 122.90% to Rs 67.92 crore (accounting for 20.33% of total PBIT). PBIT of Consumer segment rose 94.25% to Rs 77.42 crore (accounting for 23.17% of total PBIT). PBIT of Others segment rose 38.77% to Rs 12.77 crore (accounting for 3.82% of total PBIT).

PBIT margin of Safety & Industrial segment fell from 10.26% to 7.12%. PBIT margin of Transportation & Electronics segment rose from 1.59% to 7.75%. PBIT margin of Health Care segment rose from 8.42% to 12.30%. PBIT margin of Consumer segment rose from 12.74% to 19.98%. PBIT margin of Others segment rose from 33.91% to 45.05%. Overall PBIT margin rose from 7.59% to 10.02%.

Operating profit margin has jumped from 9.96% to 11.67%, leading to 50% rise in operating profit to Rs 389.24 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 38.49% to 41.99%. Purchase of finished goods cost fell from 22.59% to 20.87%. Employee cost decreased from 14.32% to 11.58%. Other expenses fell from 14.57% to 13.95%.

Other income rose 50.04% to Rs 37.12 crore. PBIDT rose 50.01% to Rs 426.36 crore. Provision for interest rose 51.84% to Rs 3.72 crore. Loan funds rose to Rs 24.57 crore as of 31 March 2022 from Rs 23.13 crore as of 31 March 2021. Inventories rose to Rs 489.58 crore as of 31 March 2022 from Rs 456.55 crore as of 31 March 2021. Sundry debtors were higher at Rs 527.77 crore as of 31 March 2022 compared to Rs 488.53 crore as of 31 March 2021. Cash and bank balance rose to Rs 1,327.86 crore as of 31 March 2022 from Rs 1,062.42 crore as of 31 March 2021.

PBDT rose 49.99% to Rs 422.64 crore. Provision for depreciation fell 10.88% to Rs 55.12 crore. Fixed assets increased to Rs 329.82 crore as of 31 March 2022 from Rs 289.42 crore as of 31 March 2021. Intangible assets increased from Rs 0.34 crore to Rs 0.56 crore.

Profit before tax grew 67.11% to Rs 367.52 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 95.55 crore, compared to Rs 57.55 crore. Effective tax rate was 26.00% compared to 26.17%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 67.49% to Rs 271.97 crore.

Equity capital stood at Rs 11.27 crore as of 31 March 2022 to Rs 11.27 crore as of 31 March 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 75.00% as of 31 March 2022 ,compared to 75.00% as of 31 March 2021 .

Cash flow from operating activities increased to Rs 327.37 crore for year ended March 2022 from Rs 321.07 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 70.31 crore, compared to Rs 41.52 crore during the year ended March 2021.

Other Highlights

Board approved changes to the Intellectual Property agreement with 3M Company USA and 3M Innovative Properties Company for the provision of technology, intellectual property, products and services to 3M India. The royalty fees payable will increase effective April 1, 2023 from 1.48% of sales turnover to approximately 2.40% of turnover, based on FY 2021-22 product mix.

Management Comments :
Mr. Ramesh Ramadurai, Managing Director of 3M India Limited, said “On a consolidated basis, the Company delivered 20% sales growth in the Oct-Dec 2022 quarter versus prior year. 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%. PBT margin was 14.2% for the 9-month period April to December 2022, delivering a strong improvement over the 8.9% PBT for the same period prior year. The Company is diligently monitoring the external situation by staying in close contact with customers and supply partners. I would like to thank our employees for their dedication and customer focus, and to all our stakeholders for their support to our Company.”

3M India : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202212	202112	Var.(%)	202212	202112	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	993.03	826.28	20.18	2,913.33	2,410.25	20.87	3,335.84	2,604.83	28.06
OPM (%)	17.18	11.55	563 bps	14.07	9.77	430 bps	11.67	9.96	171 bps
OP	170.60	95.40	78.83	409.99	235.49	74.10	389.24	259.49	50.00
Other Inc.	11.99	7.69	55.92	58.20	24.11	141.39	37.12	24.74	50.04
PBIDT	182.59	103.09	77.12	468.19	259.60	80.35	426.36	284.23	50.01
Interest	0.57	0.49	16.33	1.49	1.77	-15.82	3.72	2.45	51.84
PBDT	182.02	102.60	77.41	466.70	257.83	81.01	422.64	281.78	49.99
Depreciation	14.68	13.62	7.78	43.57	41.72	4.43	55.12	61.85	-10.88
PBT	167.34	88.98	88.06	423.13	216.11	95.79	367.52	219.93	67.11
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	167.34	88.98	88.06	423.13	216.11	95.79	367.52	219.93	67.11
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	167.34	88.98	88.06	423.13	216.11	95.79	367.52	219.93	67.11
Taxation	42.53	22.24	91.23	107.83	55.05	95.88	95.55	57.55	66.03
PAT	124.81	66.74	87.01	315.3	161.06	95.77	271.97	162.38	67.49
Minority Interest (MI)	0	0	-	0	0	-	0	0	-
Net profit	124.81	66.74	87.01	315.3	161.06	95.77	271.97	162.38	67.49
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	124.81	66.74	87.01	315.3	161.06	95.77	271.97	162.38	67.49
EPS (Rs)*	110.75	59.22	87.01	279.77	142.91	95.77	241.32	144.08	67.49

* EPS is on current equity of Rs 11.27 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

3M India : Consolidated Segment Results

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	Quarter ended				Year to Date				Year ended
	% of (Total)	202212	202112	Var.(%)	% of (Total)	202212	202112	Var.(%)	% of (Total)	202203	202103	Var.(%)
Sales
Safety & Industrial	33.18	329.54	283.84	16.10	33.04	962.61	863.89	11.43	35.78	1,193.66	1,012.50	17.89
Transportation & Electronics	39.66	393.83	300.57	31.03	38.91	1,133.66	830.29	36.54	35.20	1,174.23	890.34	31.89
Health Care	16.41	163.00	135.32	20.45	16.53	481.59	404.26	19.13	16.55	552.12	362.01	52.52
Consumer	10.15	100.84	100.96	-0.13	10.78	314.15	288.73	8.81	11.62	387.49	312.86	23.85
Others	0.59	5.83	5.59	4.25	0.73	21.32	23.08	-7.61	0.85	28.34	27.13	4.46
Total Reported Sales	100.00	993.03	826.28	20.18	100.00	2,913.33	2,410.25	20.87	100.00	3,335.84	2,604.83	28.06
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00		0.00	0.00	-
Net Sales	100.00	993.03	826.28	20.18	100.00	2,913.33	2,410.25	20.87	100.00	3,335.84	2,604.83	28.06
PBIT
Safety & Industrial	31.22	48.69	15.92	205.83	25.00	91.59	38.38	138.62	25.45	85.04	103.92	-18.17
Transportation & Electronics	38.69	60.33	30.41	98.38	37.48	137.32	46.93	192.59	27.23	90.98	14.19	541.15
Health Care	15.52	24.20	12.80	89.08	17.18	62.95	42.42	48.39	20.33	67.92	30.47	122.90
Consumer	14.03	21.88	19.65	11.36	17.92	65.67	55.93	17.40	23.17	77.42	39.86	94.25
Others	0.53	0.83	3.01	-72.52	2.43	8.89	10.09	-11.93	3.82	12.77	9.20	38.77
Total PBIT	100.00	155.93	81.79	90.64	100.00	366.42	193.77	89.10	100.00	334.12	197.64	69.06
Less : Interest		0.57	0.49	15.44		1.49	1.77	-15.97		3.72	2.45	51.60
Add: Other un-allcoable		11.99	7.69	55.88		58.20	24.11	141.38		37.12	24.74	50.04
PBIT Margin(%)
Safety & Industrial		14.77	5.61	916.54		9.51	4.44	507.15		7.12	10.26	-313.94
Transportation & Electronics		15.32	10.12	520.09		12.11	5.65	646.06		7.75	1.59	615.40
Health Care		14.85	9.46	538.81		13.07	10.49	257.73		12.30	8.42	388.43
Consumer		21.70	19.46	223.77		20.90	19.37	153.04		19.98	12.74	724.04
Others		14.18	53.79	-3,960.68		41.69	43.73	-204.45		45.05	33.91	1,113.68
PBT	100.00	167.34	88.98	88.06	100.00	423.13	216.11	95.80	100.00	367.52	219.92	67.11

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3M India consolidated net profit rises 87.01% in the December 2022 quarter
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