3M INDIA Announces Quarterly Results (1QFY22); Net Profit Up 170.8%

Mon, 16 Aug

3M INDIA has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

3M INDIA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	3,462	8,272	7,439	-10.1%	114.9%
Other income	Rs m	64	72	80	11.5%	24.7%
Turnover	Rs m	3,526	8,344	7,519	-9.9%	113.2%
Expenses	Rs m	3,946	7,248	6,960	-4.0%	76.4%
Gross profit	Rs m	-484	1,024	479	-53.3%
Depreciation	Rs m	150	144	148	2.5%	-1.7%
Interest	Rs m	8	3	6	93.4%	-29.6%
Profit before tax	Rs m	-578	949	405	-57.3%
Tax	Rs m	-153	244	104	-57.3%
Profit after tax	Rs m	-425	705	301	-57.3%
Gross profit margin	%	-14.0	12.4	6.4
Effective tax rate	%	26.5	25.7	25.7
Net profit margin	%	-12.1	8.4	4.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 114.9% on a year-on-year (YoY) basis. The expenses were up by 76.4% YoY during the same period.
• The company's operating profit declined by 198.9% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 6.4% in 1QFY22 as against 14.0% in 1QFY21.
• Depreciation charges declined by 1.7% and finance costs declined by 29.6% YoY, respectively.
• Other income increased by 24.7% YoY during the quarter.
• Net profit for the quarter increased by 170.8% YoY. Net profit margins during the quarter increased from -12.1% in 1QFY21 to 4.0% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 10.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 4.0% QoQ during the same period.
• The company's operating profit declined by 53.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 6.4% in 1QFY22 as against 12.4% in 4QFY21.
• Net profit for the quarter declined by 57.3% QoQ, while net profit margins declined from 8.4% in 4QFY21 to 4.0% in 1QFY22.

To see how 3M INDIA has performed over the last eight quarters,please visit here.

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3M INDIA Share Price Performance

Over the last one year, 3M INDIA share price has moved up from Rs 20,892.9 to Rs 23,854.5, registering a Gain of Rs 2,961.6 or around 14.2%.

Overall, the S&P BSE SENSEX is up 44.9% over the year.

Current Valuations

At the current price of Rs 23,854.5, the price to earnings (P/E) ratio of 3M INDIA stands at 114.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 14.1 times.