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Published: August 7, 2024
Updated: August 7, 2024

3M India's Q1 Profit Soars 22%: A Boost from Lower Expenses

Q1 Earnings Overview

3M India, the Indian arm of the US-based industrial conglomerate 3M Co, has reported a 22% jump in its first-quarter profit, driven by a decrease in total expenses. The company's consolidated profit after tax rose to Rs 157 crore for the quarter ended June 30, up from Rs 129 crore in the same period last year.

Expense Reduction

The significant decrease in total expenses, down 4% from the previous year, was primarily due to lower employee benefit expenses and depreciation charges. This reduction in expenses helped boost the company's bottom line, despite flat revenue growth.

Segment Performance

The safety and industrial segment, which contributes 32% to the total revenue, saw a slight rise in revenue. However, the healthcare segment's revenue remained flat, while the transportation and electronics segment's revenue fell 4%. The company's total revenue remained flat, as price hikes across its product range dampened demand.

Global Perspective

Last month, US-based 3M Co reported better-than-expected profit for the June quarter and raised its annual adjusted profit forecast. The company hopes to benefit from its restructuring measures and increasing demand for electronics.

3M India's Q1 performance is a testament to the company's ability to manage expenses and maintain profitability despite challenging market conditions. With its diversified product range and global presence, 3M India is well-positioned for future growth.