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 Diversified products maker 3M India reported its first drop in quarterly profit in three years on Tuesday, pressured by higher expenses and weakness in its transportation and electronics segment.

The company, whose products range from "Post-it" notes to power tools, reported an 8.4% fall in profit after tax to 1.34 billion rupees ($15.9 million) for the second quarter ended Sept. 30.

Its revenue from operations rose about 7% to 11.11 billion rupees. However, expenses rose about 10% to 9.46 billion rupees, mainly due to a 26% jump in material costs.

"We experienced cost headwinds both due to elevated freight costs as well as material cost increases," Managing Director Ramesh Ramadurai said.

The higher expenses pressured 3M India's earnings before interest, tax, depreciation and amortization (EBITDA), which shrunk to 2.01 billion rupees from 2.10 billion rupees a year ago and 2.27 billion rupees in the previous quarter.

The company's transportation and electronics segment, which houses products including automotive parts, lighting products and wires and cables and contributes 35% of revenue, reported a 1.4% fall in revenue.

Demand for automotive parts was dull as Indian carmakers' sales to dealers marked the first decline in 10 quarters in the July-September period, industry data showed.

Meanwhile, revenue in the safety and industrial segment, which offers products such as face shields and construction hats, grew nearly 9%, helped by pick-up in infrastructure and manufacturing activity.

3M India, the Indian arm of the U.S.-based industrial conglomerate 3M, said its revenue from its health care segment grew 19%.

The company has been hiking prices across its product range over the past few quarters, dampening demand.

Last month, 3M reported about an 18% rise in quarterly profit as cost cuts countered the impact of slow sales in its consumer business.

($1 = 84.3500 Indian rupees)