3M India

PAT down 35% hit by weak operating performance

Feb 17, 2020 01:02 IST capital market

3M India, is the subsidiary of USA based 3M Company,has registered 6% fall in its cconsolidated sales to Rs 746.38 crore for the quarter ended Dec 2019. Lower sales together with sharp 710 bps contraction in OPM to 13.1%, the operating profit was down by sharp 42% to Rs 97.85 crore. However the fall at PBIDT moderated to 38% (to Rs 112.28 crore) with other income stand higher by 15% to Rs 14.43 crore. But hit by higher interest and depreciation, the PBT was down by 43% to Rs 96.41 crore. The taxation was lower by 58% to Rs 24.49 crore and thus the fall at PAT level moderated to stand at 35% to Rs 71.92 crore.
  • Downside in revenue was driven largely by lower revenue registered by all business segments of the company. The safety & Industrial (S&I) business of the company registered 10% fall in revenue to Rs 284.60 crore (or 38% of sales). Similarly the segment revenue of Healthcare was down by 7% to Rs 120.88 crore (or 16% of sales). The segment revenue of Transportation & Electronics (T&E) was nearly flat (up 0%) at Rs 252.69 crore (or 34% of sales)compared to RS 253.57 crore in the corresponding previous period. That of Consumer was down by 1% (to Rs 80.33 crore or 11% of total sales).The others was down by 29% to RS 6.88 crore.
  • The EBIT was down by 47% to Rs 83.10 crore and that is largely due to lower segment profit registered by all segments largely driven by lower sales as well as lower segment margin. Segment profit of Safety & Industrial was down by 51% to Rs 38.26 crore that of T&E was down by 55% to Rs 12.10 crore. The segment profit of Healthcare and Consumer was down by 55% (to Rs 13.55 crore) and 12% (to Rs 17.44 crore) respectively. The segment profit of others was down by 30% to Rs 1.75 crore.  

Nine Month Performance

Consolidated sales for the period was higher by 2% to Rs 2313.40 crore. But with 290 bps contraction in OPM to 16.1% the operating profit was down by 14% to Rs 373.34 crore. The PBT was down by 17% to Rs 360.60 crore after accounting for lower OI, higher interest and higher depreciation. With taxation stand lower by 35% to Rs 98.54 crore, the PAT was down by 7% to Rs 262.06 crore.

The segment revenue of S&I was down by 1% to Rs 877.90 crore and that together with 460 bps contraction in segment margin resulted in 23% fall in segment profit to Rs 142.61 crore. However the T&E business despite 3% growth in sales to Rs 782.58 crore has seen its segment profit down by 24% to Rs 65.53 crore as its segment margin down by 310 bps to 8.4%. The segment profit of healthcare was down by 19% to Rs 62.04 crore hit largely by 440 bps to 16.2% as its segment sales was up by modest 3% to Rs 382.16 crore. But the segment profit of consumer was up by 22% to Rs 55.50 crore facilitated by higher sales (up 7% to RS 251.53 crore) and 270 bps expansion in segment margin to 22.1%. The segment profit of others was down by 35% to Rs 4.22 crore.

3M India: Consolidated Results

 

1912 (3) 1812 (3) Var. (%) 1912 (9) 1812 (9) Var. (%) 1903 (12) 1803 (12) Var. (%)
Sales 745.38 791.55 -6 2313.40 2273.97 2 3016.82 2734.19 10
OPM (%) 13.1 21.2 16.1 19.0 17.8 18.2
OP 97.85 167.50 -42 373.34 432.85 -14 535.59 498.61 7
Other inc. 14.43 12.59 15 33.46 34.36 -3 36.83 44.79 -18
PBIDT 112.28 180.09 -38 406.79 467.21 -13 572.42 543.40 5
Interest 1.12 0.14 676 2.76 0.49 466 1.12 2.03 -45
PBDT 111.15 179.94 -38 404.03 466.72 -13 571.30 541.37 6
Dep. 14.75 10.77 37 43.43 32.98 32 43.76 43.51 1
PBT before EO 96.41 169.17 -43 360.60 433.75 -17 527.54 497.86 6
EO Income 0.00 0.00 0.00 0.00 0.00 0.00
PBT after EO 96.41 169.17 -43 360.60 433.75 -17 527.54 497.86 6
Taxation 24.49 58.98 -58 98.54 150.92 -35 184.39 174.56 6
PAT 71.92 110.19 -35 262.06 282.83 -7 343.15 323.30 6
Share of Profit/(Loss) from Associates 0.00 0.00 0.00 0.00 0.00 0.00
Net profit (continuing operations) 71.92 110.19 -35 262.06 282.83 -7 343.15 323.30 6
EPS (Rs)* # # # # 304.6 287.0
* EPS is on current equity of Rs 11.2651 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

3M India : Consolidated Segment results

 

Sales 1912 (3) 1812 (3) Var. (%) % to total 1912 (9) 1812 (9) Var. (%) % to total 1903 (12) % to total
Safety & Industrial 284.60 316.90 -10 38 877.90 887.11 -1 38 1176.84 39
Transportation & Electronics 252.69 253.57 0 34 782.58 758.06 3 34 1030.55 34
Healthcare 120.88 130.58 -7 16 382.16 371.43 3 17 475.27 16
Consumer 80.33 80.87 -1 11 251.53 235.01 7 11 303.49 10
Others 6.88 9.62 -29 1 19.24 22.37 -14 1 30.67 1
Total Reportable Segment 745.38 791.55 -6 100 2313.40 2273.97 2 100 3016.82 100
Less: Inter segment revenues
Net sales 745.38 791.55 -6 2313.40 2273.97 2 3016.82
PBIT
Safety & Industrial 38.26 77.42 -51 46 142.61 184.73 -23 43 243.13 49
Transportation & Electronics 12.10 27.03 -55 15 65.53 86.66 -24 20 106.98 22
Healthcare 13.55 30.05 -55 16 62.04 76.45 -19 19 79.43 16
Consumer 17.44 19.71 -12 21 55.50 45.51 22 17 54.88 11
Others 1.75 2.51 -30 2 4.22 6.52 -35 1 7.41 2
Total 83.10 156.72 -47 100 329.90 399.87 -17 100 491.83 100
Less: Interest 1.12 0.14 676 2.76 0.49 466 1.12
Add: Interest Income
Add: Other un-allcoable 14.43 12.59 15 33.46 34.36 -3 36.83
PBT before Share of profit from JV 96.41 169.17 -43 360.60 433.75 -17 527.54
Add EO Income 0.00 0.00 0.00 0.00 0.00
Add:Profit from JV
PBT after Share of profit from JV 96.41 169.17 360.60 433.75 527.54
Figures in Rs crore
Source: Capitaline Corporate Database
Segment Margin 1912 (3) 1812 (3) Var (in bps) 1912 (9) 1812 (9) Var (in bps) 1903 (12)
Safety & Industrial 13.4 24.4 -1099 16.2 20.8 -458 20.7
Transportation & Electronics 4.8 10.7 -587 8.4 11.4 -306 10.4
Healthcare 11.2 23.0 -1180 16.2 20.6 -435 16.7
Consumer 21.7 24.4 -267 22.1 19.4 270 18.1
Others 25.4 26.1 -65 21.9 29.2 -725 24.2

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