3M India saw a 27% increase in quarterly profit on Tuesday, driven by robust demand in its healthcare, transportation, and electronics sectors.
The company, known for producing a wide range of products from ‘Scotch’ tape to medical supplies, witnessed its shares surge by as much as 11.8% to 34,599 rupees, marking their highest level in nearly four months.
Quarterly consolidated profit after tax jumped to 1.73 billion rupees ($20.8 million) from 1.36 billion rupees a year earlier.
Growing Healthcare Needs
The healthcare segment, responsible for surgical supplies and medical tapes, experienced a notable 19% revenue growth. This surge in demand reflects the increased need for healthcare services in India due to a growing population.
3M India also observed strong demand in its transportation and electronics segment, which includes automotive parts and lighting products. With a rise in demand for both private and commercial vehicles, the company benefited, seeing a nearly 4% revenue growth to 4.51 billion rupees from this segment.
The company’s overall revenue received a boost from steady price increases across various products, including adhesives and office supplies. Revenue from operations saw a nearly 5% increase to 10.95 billion rupees, while earnings before interest, tax, depreciation, and amortization (EBITDA) expanded to 2.45 billion rupees from 2.04 billion rupees a year ago.
Dividend Announcement
Additionally, 3M India announced a dividend of 160 rupees per share along with a special dividend of 525 rupees per share.
The U.S.-based parent company, 3M Co, also reported better-than-expected profits in the March quarter, driven by higher sales in its electronics division.
(Note: $1 = 83.1825 Indian rupees)
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