3M India Q3FY25 results: Net profit decreases 16% to Rs 114 crore

The company, whose products range from "Post-it" notes to power tools, said its profit after tax fell to Rs 114 crore ($13.05 million) for quarter ended December 31, compared to Rs 135 cr a year ago

Diversified products maker 3M India reported a 16 per cent fall in its third-quarter profit on Friday, as inflationary pressures pushed costs higher, hurting margins.

The company, whose products range from "Post-it" notes to power tools, said its profit after tax fell to Rs 114 crore ($13.05 million) for the quarter ended December 31, compared to Rs 135 crore a year ago.

India's consumer goods makers have grappled with high inflation, which spiked to 6.21 per cent in October and remained above 5 per cent through December, driving up the cost of key raw materials.

3M reported a 23 per cent increase in the cost of raw materials and a 13 per cent rise in total expenses for the quarter.

 

The company's earnings before interest, tax, depreciation, and amortization (Ebitda) margins contracted by 12 per cent compared to the previous year, negatively impacting its profitability.  ALSO READ: LIC Q3 FY25 results: Net profit increases 17% to Rs 11,056 crore

However, the Scotch-Brite scrub maker has continuously raised prices across its product range in recent quarters to counter inflationary pressures, which helped revenue to grow.

It's transportation and electronics segment, which includes automotive parts, lighting solutions, and wires and cables, posted a 10 per cent increase in revenue, driving the company's total revenue up 8 per cent to 10.9 billion rupees.

3M India, the Indian arm of the US-based industrial conglomerate 3M, said its revenue from safety and industrial segment, with products like face shields and construction hats, posted a 1.4 per cent revenue fall.

Shares of the company fell 2 per cent after posting results.