3M India Ltd's Q2FY19 standalone net profit rises 6.95% yoy to Rs63.84cr : Misses Estimates

The company’s standalone revenue stood at Rs682.86cr, up 20.36% yoy but down 2.54% qoq.

Oct 30, 2018 06:10 IST India Infoline Research Team

3M India Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 682.86 20.4
EBITDA 94.93 2.3
EBITDA Margin (%) 13.9 [246]
Net Profit (adjusted) 63.84 7.0
***EBITDA margin change is bps
3M India’s Q2FY19 number were a mixed bag as strong performance in the top-line did not translate through the bottom-line owing to higher operating expenses. Revenue increased 20.4% yoy to Rs682.9cr vs. Rs567.4cr in Q2FY18. EBITDA saw a marginal growth of 2.3% yoy to Rs94.9cr for the quarter. EBITDA margin shrunk by 246bps yoy to 13.9% from 16.4% in Q2FY18. Net profit rose 7% yoy to Rs63.8cr for the quarter as against Rs59.7cr during the same period last year.
  • Top-line exhibited a strong growth due to healthy performance across the segments mainly led by Industrial (42% of sales), Healthcare (16% of sales) and Safety & Graphics segments (22% of sales).
  • However, both operating profit and net income suffered a bit owing to increased operating expenses (up 23.5% yoy).
  • Industrial segment grew by 14.8% yoy to Rs287.1cr in Q2FY19. However, EBIT fell by 5.3% yoy to Rs40.2cr, while EBIT margin stood at 14% on yoy basis.
  • Healthcare revenue on a yoy basis, grew by 18.5% to Rs106.9cr while EBIT saw a marginal decline of 2.1% to Rs15.8cr. EBIT margin came healthy at 14.8% for the quarter gone by.
  • Safety & Graphics saw a healthy growth of 18.4% yoy to Rs148.3cr during the September quarter. However, EBIT for the segment dropped by 17.5% yoy to Rs8.4cr, while EBIT margin came at 5.7% only.
  • While revenue for the Consumer segment witnessed a strong growth of 27.3% yoy to Rs81.5cr, EBIT too jumped 51.3% yoy to Rs11.9cr in Q2FY19. EBIT margin also remained healthy at 14.6% for the quarter.
  • Energy segment’s revenue jumped by 60.6% yoy to Rs53cr in Q2FY19 vs. Rs33cr in Q2FY18. While EBIT for the quarter surged 44.4% yoy to Rs6.3cr, EBIT margin stood at 11.9% on a yoy basis.

Technical View:

3M India Ltd is currently trading at Rs. 20,332.75, up by 599.75 points or 3.04% from its previous closing of Rs. 19,733 on the BSE.
The scrip opened at Rs. 19,877.40 and has touched a high and low of Rs. 20,400 and Rs. 19,877.40 respectively. So far 2,024 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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