3M India
The market was obviously thrilled with 3M India Q2FY15 numbers, going on to hit a new life time high. The company’s net profit for the quarter came in at Rs.25 crore, up 17 times on YoY. The rise in sales was flat, at less than 1% at Rs.448 crore. Reduction in operating cost by 6% is what helped the company post this bumper numbers. The H1FY15 net profit of Rs.50 crore has already surpassed FY14 net profit of Rs.43 crore, indicating a super fiscal this time around. Its performance is driven mainly by the Industrial segment, which contributed 45% to the topline.
The parent company, American MNC, 3M holds 75% stake in the Indian company and as at 30th Sept 2015, FIIs stake has risen from 9.29% to 9.7% (QoQ) while that of domestic institutions has gone down from 3.22% to 3.1%. The company in April delisted from Calcutta Stock Exchange and there is probably hope that it could go for delisting from Indian bourses.
The company markets about 7000 products in India. It operates in five operating business segments – (1)Industrial and Transportation business, which include tapes, which are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles. (2) Health Care business which includes medical and surgical supplies, medical devices, skin and wound care and infection prevention products. (3)Safety and graphics include personal protection products, brand and asset protection solutions, border control products, passive fire protection products. (4)Consumer and Office Business portfolio brands include Scotch-Brite brand, Scotch brand, Post-it and Scotchguard brand. (5) Energy which includes electronic devices, telecom networks and renewable energy.