3M India posts 53% increase in Q1 profit

3M India reported an over 53% rise in first-quarter profit, aided by strong demand in its transportation and electronics and safety and industrial businesses.

The Bengaluru-based company, which makes everything from ‘Scotch’ tape and ‘Post-it’ notes to power tools and medical products, said its consolidated profit after tax rose to 1.29 billion rupees ($15.58 million) from 842.6 million rupees a year earlier.

The Indian arm of U.S.-based 3M Co said revenue from its mainstay transportation and electronics segment, which makes power tools and cables, jumped nearly 13% to 4.13 billion rupees.

Revenue from its safety and industrial segment, comprising of construction protection kits and accessories, rose nearly 6% to 3.29 billion rupees, contributing more than 31% to the total revenue.

The company’s revenue from operations rose over 11% to 10.50 billion rupees.

In spite of strong June-quarter earnings, the company cautioned that cost headwinds and supply chain volatility will continue to be a challenge.

Shares of 3M India rose as much as 4.76% after its results. It gained 17.63% in the April-June quarter. Reuters