Results     12-Nov-23
Analysis
3M India
OPM jumped by 590 bps
For the quarter ending Sept 2023, consolidated Net sales (including other operating income) of 3M India has increased 6.43% to Rs 1039.52 crore compared to quarter ended Sept 2022.  Sales of Safety & Industrial segment has gone up 3.15% to Rs 332.00 crore (accounting for 31.94% of total sales).  Sales of Transportation & Electronics segment has gone up 4.66% to Rs 390.83 crore (accounting for 37.60% of total sales).  Sales of Health Care segment rose 20.03% to Rs 194.68 crore (accounting for 18.73% of total sales).  Sales of Consumer segment has gone up 2.85% to Rs 115.16 crore (accounting for 11.08% of total sales).  Sales of Others segment has gone down 5.77% to Rs 6.84 crore (accounting for 0.66% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 65.47% to Rs 179.22 crore.  PBIT of Safety & Industrial segment rose 122.91% to Rs 44.84 crore (accounting for 25.02% of total PBIT).  PBIT of Transportation & Electronics segment rose 107.59% to Rs 87.61 crore (accounting for 48.88% of total PBIT).  PBIT of Health Care segment rose 10.12% to Rs 20.68 crore (accounting for 11.54% of total PBIT).  PBIT of Consumer segment fell 5.14% to Rs 21.97 crore (accounting for 12.26% of total PBIT).  PBIT of Others segment rose 1.68% to Rs 4.11 crore (accounting for 2.30% of total PBIT).  

PBIT margin of Safety & Industrial segment rose from 6.25% to 13.51%.  PBIT margin of Transportation & Electronics segment rose from 11.30% to 22.42%.  PBIT margin of Health Care segment fell from 11.58% to 10.62%.  PBIT margin of Consumer segment fell from 20.68% to 19.08%.  PBIT margin of Others segment rose from 55.77% to 60.18%.  Overall PBIT margin rose from 11.09% to 17.24%.  

Operating profit margin has jumped from 12.58% to 18.48%, leading to 56.31% rise in operating profit to Rs 192.11 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 42.47% to 35.75%.   Purchase of finished goods cost rose from 21.03% to 22.71%.   Employee cost decreased from 10.57% to 9.48%.   Other expenses fell from 13.27% to 12.94%.   

Other income fell 49.83% to Rs 17.44 crore.  PBIDT rose 32.91% to Rs 209.55 crore.  Provision for interest rose 97.37% to Rs 0.75 crore.  Loan funds rose to Rs 23.81 crore as of 30 September 2023 from Rs 22.13 crore as of 30 September 2022.  Inventories declined from Rs 591.16 crore as of 30 September 2022 to Rs 577.39 crore as of 30 September 2023.  Sundry debtors were higher at Rs 658.88 crore as of 30 September 2023 compared to Rs 580.46 crore as of 30 September 2022.  Cash and bank balance declined from Rs 1,420.38 crore as of 30 September 2022 to Rs 1,004.91 crore as of 30 September 2023.  

PBDT rose 32.76% to Rs 208.8 crore.  Provision for depreciation fell 11.71% to Rs 12.89 crore.  Fixed assets increased to Rs 357.87 crore as of 30 September 2023 from Rs 344.05 crore as of 30 September 2022.  Intangible assets declined from Rs 0.32 crore to Rs 0.22 crore.  

Profit before tax grew 37.31% to Rs 195.91 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 49.8 crore, compared to Rs 36.45 crore.  Effective tax rate was 25.42% compared to 25.55%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 37.54% to Rs 146.11 crore.  

Equity capital stood at Rs 11.27 crore as of 30 September 2023 to Rs 11.27 crore as of 30 September 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 75.00% as of 30 September 2023 ,compared to 75.00% as of 30 September 2022 .  

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

Net sales (including other operating income) of 3M India has increased 8.79% to Rs 2089.17 crore.  

Operating profit margin has jumped from 12.47% to 17.47%, leading to 52.52% rise in operating profit to Rs 365.08 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 43.37% to 38.00%.   Purchase of finished goods cost rose from 21.17% to 21.99%.   Employee cost decreased from 10.42% to 9.83%.   Other expenses fell from 12.93% to 12.57%.   

Other income fell 29.43% to Rs 32.61 crore.  PBIDT rose 39.26% to Rs 397.69 crore.  Provision for interest rose 84.78% to Rs 1.7 crore.  Loan funds rose to Rs 23.81 crore as of 30 September 2023 from Rs 22.13 crore as of 30 September 2022.  Inventories declined from Rs 591.16 crore as of 30 September 2022 to Rs 577.39 crore as of 30 September 2023.  Sundry debtors were higher at Rs 658.88 crore as of 30 September 2023 compared to Rs 580.46 crore as of 30 September 2022.  Cash and bank balance declined from Rs 1,420.38 crore as of 30 September 2022 to Rs 1,004.91 crore as of 30 September 2023.  

PBDT rose 39.11% to Rs 395.99 crore.  Provision for depreciation fell 7.17% to Rs 26.81 crore.  Fixed assets increased to Rs 357.87 crore as of 30 September 2023 from Rs 344.05 crore as of 30 September 2022.  Intangible assets declined from Rs 0.32 crore to Rs 0.22 crore.  

Profit before tax grew 44.33% to Rs 369.18 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 93.85 crore, compared to Rs 65.29 crore.  Effective tax rate was 25.42% compared to 25.53%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 44.54% to Rs 275.33 crore.  

Equity capital stood at Rs 11.27 crore as of 30 September 2023 to Rs 11.27 crore as of 30 September 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 75.00% as of 30 September 2023 ,compared to 75.00% as of 30 September 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.  

Other Highlights

3M Company, announced in July 2022 its intent to spin-off its Health Care business, which would result in two public companies. 3M India in collaboration with 3M Company, considered that an exclusive Licensed Manufacturer and Reseller model together with an independent Distribution model was the best arrangement to align with the new Healthcare entity and its affiliates to ensure the continued growth of the Health Care business in India. Board of Directors of 3M India approved above arrangement on 10 Nov 2023. These agreements have an initial term of 5 years and will become effective upon the spin-off of 3M Company’s, Health Care business into a stand-alone, public company. 3M Company expects to complete the global health care spin-off during the first half of 2024.

A Licensed Manufacturer and Reseller model will allow 3M India continued exclusive access to the Health Care products and IP portfolio from the new entity and continued participation in the growing Health Care market in India. 


Management Comments :
Mr. Ramesh Ramadurai, Managing Director of 3M India, said “On a consolidated basis, the Company delivered 6.4% sales growth in the current quarter versus prior year, and declined 1% on a sequential basis. All Business segments delivered growth versus prior year, led by Health Care at 20% growth. We continue to maintain a sharp focus on the growth segments and on serving our customers efficiently”

Commenting on this new model, 3M India Managing Director Ramesh Ramadurai said, “3M India is pleased with the arrangement with the new world-class Health Care entity and its affiliates. We believe it to be in the best interests of 3M India and all its stakeholders.”



3M India : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202309202209Var.(%)202309202209Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,039.52976.706.432,089.171,920.298.793,959.373,335.8418.69
OPM (%)18.4812.58590 bps17.4712.47501 bps15.2611.67359 bps
OP192.11122.9056.31365.08239.3752.52604.29389.2455.25
Other Inc.17.4434.76-49.8332.6146.21-29.4368.1037.1283.46
PBIDT209.55157.6632.91397.69285.5839.26672.39426.3657.70
Interest0.750.3897.371.700.9284.787.273.7295.43
PBDT208.80157.2832.76395.99284.6639.11665.12422.6457.37
Depreciation12.8914.6-11.7126.8128.88-7.1757.6855.124.64
PBT195.91142.6837.31369.18255.7844.33607.44367.5265.28
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO195.91142.6837.31369.18255.7844.33607.44367.5265.28
EO Income00-00-00-
PBT after EO195.91142.6837.31369.18255.7844.33607.44367.5265.28
Taxation49.836.4536.6393.8565.2943.74156.4295.5563.70
PAT146.11106.2337.54275.33190.4944.54451.02271.9765.83
Minority Interest (MI)00-00-00-
Net profit146.11106.2337.54275.33190.4944.54451.02271.9765.83
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations146.11106.2337.54275.33190.4944.54451.02271.9765.83
EPS (Rs)*129.6594.2637.54244.30169.0244.54400.20241.3265.83
* 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
 Quarter endedYear ended
% of (Total)202309202209Var.(%)% of (Total)202306202206Var.(%)
Sales
Safety & Industrial31.94332.00321.863.15
Transportation & Electronics37.60390.83373.424.66
Health Care18.73194.68162.2020.03
Consumer11.08115.16111.972.85
Others0.666.847.26-5.77
Total Reported Sales100.001,039.52976.706.43100.003,959.370.00-
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.001,039.52976.706.43100.003,959.370.00-
PBIT
Safety & Industrial25.0244.8420.12122.91
Transportation & Electronics48.8887.6142.20107.59
Health Care11.5420.6818.7810.12
Consumer12.2621.9723.16-5.14
Others2.304.114.051.68
Total PBIT100.00179.22108.3165.47100.00546.610.00-
Less : Interest0.750.3895.857.270.00-
Add: Other un-allcoable17.4434.76-49.8268.100.00-
PBIT Margin(%)
Safety & Industrial 13.516.25725.65 10.500.001,050.09
Transportation & Electronics 22.4211.301,111.41 15.100.001,509.93
Health Care 10.6211.58-95.62 12.240.001,224.32
Consumer 19.0820.68-160.69 20.210.002,020.64
Others 60.1855.77441.03 41.120.004,112.14
PBT100.00195.91142.6837.30100.00607.440.00-
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