Post-it maker 3M India's Q1 profit rises on robust demand

3M India reported an over 53 per cent 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 per cent 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 per cent to the total revenue.

The company's revenue from operations rose over 11 per cent 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 per cent after its results. It gained 17.63 per cent in the April-June quarter.