`Post-it` maker 3M India posts Q4 profit rise; shares surge
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3M India reported a 27% rise in quarterly profit on Tuesday aided by strong demand in its healthcare equipment, as well as transportation and electronics segments.
Shares of the company, which makes everything from 'Scotch' tape and 'Post-it' notes to power tools and medical products, rose as much as 11.8% to 34,599 rupees, their highest in nearly four months.
Consolidated profit after tax rose to 1.73 billion rupees ($20.8 million) in the quarter ended March 31 from 1.36 billion rupees an year ago.
3M India, the Indian arm of the U.S.-based 3M Co, said its healthcare segment, which makes surgical supplies and medical component tapes, saw a 19% rise in revenue.
Demand for medical equipments has risen in India with a rise in the need for healthcare for a rising population. 3M also saw strong demand in its transportation and electronics segment, which houses products including automotive parts, lighting needs and wires and cables.
Demand for private and commercial vehicles grew during the quarter, benefiting companies like 3M. Revenue from the segment, which contributes 41% to the revenue mix, grew nearly 4% to 4.51 billion rupees.
3M's total revenue was further boosted as it has been benefiting from steady price increases across products including adhesives and office supplies.
Revenue from operations for saw a near 5% uptick 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 an year ago.
Additionally, the company announced a dividend of 160 rupees per share and a special dividend of 525 rupees per share.
U.S. based 3M Co had posted a better-than-expected profit in the March-quarter on higher sales in its electronics unit.
