3M India Q4 PAT jumps 16% YoY

On a consolidated basis, 3M India reported 16.7% rise in net profit to Rs 70 crore on 22.9% increase in sales to Rs 827 crore in Q4 FY21 over Q4 FY20.

May 28, 2021 02:05 IST capital market

EBITDA improved 23.6% to Rs 110 crore in the fourth quarter as against Rs 89 crore reported in the same period last year. Profit before tax in Q4 FY21 stood at Rs 95 crore, up by 31.9% from Rs 72 crore in Q4 FY20.

The company recorded 49.7% drop in consolidated net profit to Rs 162 crore on 12.8% fall in sales to Rs 2,605 crore in FY21 over FY20.

Ramesh Ramadurai, managing director of 3M India, said We delivered broad-based growth across most of our end markets in the Jan-Mar 2021 quarter, sustaining the sequential improvements since FY Q2 2020-21. Due to the strong demand rebound as well as supply chain interruptions, we experienced cost pressures in raw materials and logistics costs.

During the quarter, we announced actions to consolidate our manufacturing footprint in Pune, which will improve our operational efficiencies and customer service.

The managing director further said that the spike in COVID-19 cases in the second wave has interrupted the sequential growth momentum and inserted more volatility and uncertainty on the demand side.

3M India is an Indian subsidiary of US-based 3M Company. The company offers tapes, adhesives, advanced ceramics, sealants, specialty materials, closure systems for personal hygiene products, as well as offers scotch masking tape, scotch filament tape and scotch packaging tape.

The scrip shed 0.40% to currently trade at Rs 26,492 on the BSE.

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