For
the quarter ending March 2023, consolidated Net sales (including other operating income) of 3M India has increased 13.01% to Rs 1046.04 crore compared to quarter ended Mar 2022. Sales of Safety & Industrial segment has gone up 2.70% to Rs 338.67 crore (accounting for 32.38% of total sales). Sales of Transportation & Electronics segment has gone up 26.58% to Rs 435.38 crore (accounting for 41.62% of total sales). Sales of Health Care segment rose 17.16% to Rs 173.22 crore (accounting for 16.56% of total sales). Sales of Consumer segment has gone down 3.27% to Rs 95.53 crore (accounting for 9.13% of total sales). Sales of Others segment has gone down 38.36% to Rs 3.24 crore (accounting for 0.31% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 25.03% to Rs 180.23 crore. PBIT of Safety & Industrial segment fell 6.05% to Rs 45.07 crore (accounting for 25.01% of total PBIT). PBIT of Transportation & Electronics segment rose 120.22% to Rs 99.56 crore (accounting for 55.24% of total PBIT). PBIT of Health Care segment fell 34.33% to Rs 17.23 crore (accounting for 9.56% of total PBIT). PBIT of Consumer segment fell 22.39% to Rs 17.12 crore (accounting for 9.50% of total PBIT). PBIT of Others segment fell 53.36% to Rs 1.25 crore (accounting for 0.69% of total PBIT).
PBIT margin of Safety & Industrial segment fell from 14.55% to 13.31%. PBIT margin of Transportation & Electronics segment rose from 13.14% to 22.87%. PBIT margin of Health Care segment fell from 17.75% to 9.95%. PBIT margin of Consumer segment fell from 22.33% to 17.92%. PBIT margin of Others segment fell from 50.82% to 38.46%. Overall PBIT margin rose from 15.57% to 17.23%.
Operating profit margin has jumped from 17.02% to 18.58%, leading to 23.34% rise in operating profit to Rs 194.33 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 41.06% to 37.99%. Purchase of finished goods cost rose from 20.63% to 23.18%. Employee cost decreased from 9.46% to 9.21%. Other expenses fell from 12.10% to 11.23%. Other income rose 7.17% to Rs 9.87 crore. PBIDT rose 22.45% to Rs 204.2 crore. Provision for interest rose 196.41% to Rs 5.78 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 20.39% to Rs 198.42 crore. Provision for depreciation rose 5.38% to Rs 14.11 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 21.72% to Rs 184.31 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 48.59 crore, compared to Rs 40.5 crore. Effective tax rate was 26.36% compared to 26.75%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 22.36% to Rs 135.72 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 .
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 .
Other Highlights
Board recommended a final dividend of Rs
100 per equity share of Rs 10 each for financial year ending 31 March 2023.
Record date for the same is fixed as July 26, 2023.
The Board of Directors discussed the
implication on the business of 3M India in relation to the decision of 3M
Company, USA (the Company’s majority shareholder) to spin-off its global
healthcare business into a stand-alone public company, 3M Health Care Company
(3M Health Care), incorporated in Delaware. Further, the Board of Directors
noted the proposal from 3M Company, USA for healthcare business of the Company
to continue to be operated by the Company. In this regard, a contract manufacturing
and distributorship arrangement is to be entered into between 3M Health Care
(and/or one or more of its affiliates) and the Company for certain 3M Health
Care products. Pursuant thereto (and after having reviewed various possible
options), the Board of Directors of the Company have granted approval for
commencing discussion and negotiations with 3M Company, USA (and other relevant
entities) in respect of the aforesaid manufacturing and distributorship
arrangement.