3M India posts profit fall for third straight quarter on higher costs

Reuters

6 days ago

May 28 (Reuters) - 3M India (TMIN.NS), opens new tab reported a fall in profit for the third straight quarter on Wednesday as higher costs overshadowed demand for its diversified products such as 'Post it' notes and 'Scotch Brite' scouring pads.
The company's profit after tax slumped 59% to 713.7 million rupees ($8.4 million) for the fourth-quarter ended March 31. In the previous two quarters, it posted a profit fall of 16% and 8%, respectively.
Cost pressures have squeezed margins at the U.S.-based 3M's (MMM.N), opens new tab India arm on intensifying competition from local rivals, and as customers cut back on spending due to inflation.
Last month, parent 3M beat first-quarter profit estimates but flagged that U.S. tariffs on imports could hit its 2025 earnings.
Total expenses rose 10.4%, eclipsing a 9% rise in revenues.
Revenue in its transportation and electronics segment grew 2%. The segment accounts for roughly 40% of the topline and counts products such as sealants, screen guards and industrial tapes among its lineup.
Its second-biggest business, the safety and industrials segment, as well as the healthcare segment, both posted a nearly 14% growth in revenue.
Shares of the company fell about 2% after the results.
($1 = 85.3875 Indian rupees)