3M India posts smallest profit growth in nine quarters as costs bite
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Diversified products maker 3M India posted on Thursday its smallest profit growth in nine quarters, as surging input costs countered sustained demand for its core products.
Consolidated profit after tax came increased more than 8% from a year earlier to 1.35 billion rupees (about $16 million) in the third quarter ended Dec. 31, the Indian unit of U.S.-based industrial conglomerate 3M said in an exchange filing.
Input costs rose 5.9% to 3.98 billion rupees, sending the company's total expenses slightly higher.
Sales increased at the mainstay safety & industrial and transportation & electricals segments, which together account for 69% to 74% of 3M India's total revenue, while the smaller healthcare segment saw a fall in revenue.
"Business trends broadly remained steady versus the previous quarter, though some softness was observed in the healthcare segment," Managing Director Ramesh Ramadurai said.
Sustained infrastructure spending ahead of the 2024 general elections has boosted demand for industrial products, helping companies like 3M to make strong profits in the past year.
Shares of 3M India, which gained more than 17% in the December quarter, fell 1.2% after the results came.
Last month, parent company 3M forecast full-year earnings below estimates, saying the macro environment remained muted.
($1 = 82.9950 Indian rupees)
