What Caused 3M India’s Q4 Net Profit to Plummet by Nearly 59%?
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Synopsis
In a surprising turn of events, 3M India Limited has reported a staggering 58.7% drop in net profit for Q4 FY25. Learn about the factors behind this decline, the company's revenue growth, and their proposed dividends in our in-depth analysis.
Key Takeaways
- 3M India’s net profit fell by 58.7% YoY to Rs 71.37 crore in Q4 FY25.
- Tax expenses doubled to Rs 146.73 crore, affecting profits significantly.
- Revenue from operations increased by 9.48% to Rs 1,198.23 crore.
- Full-year net profit decreased by 18.4% to Rs 476.06 crore.
- Healthcare division revenue rose by 17.6% to Rs 233.72 crore.
Mumbai, May 28 (NationPress) 3M India Limited, the Indian branch of the US-based 3M Co., announced on Wednesday that the company’s net profit has decreased by 58.7% year-on-year (YoY) to Rs 71.37 crore in the fourth quarter of the financial year 2024-25 (Q4 FY25), down from Rs 172.85 crore in the corresponding quarter of the previous fiscal year (Q4 FY24).
A significant factor contributing to this decline was a sharp increase in tax liabilities, with current tax expenses more than doubling to Rs 146.73 crore in the fourth quarter, compared to Rs 58.34 crore in the same period last year.
In contrast, revenue from operations saw a growth of 9.48%, reaching Rs 1,198.23 crore in Q4 FY25, an increase from Rs 1,094.54 crore in the same quarter of the previous year, as per the company’s filing with the stock exchange.
For the entire financial year FY25, 3M India’s net profit dropped by 18.4% to Rs 476.06 crore, compared to Rs 583.41 crore in FY24.
Nevertheless, revenue from operations for the full year increased by 6.1%, totaling Rs 4,445.55 crore, up from Rs 4,189.36 crore in FY24.
The company also reported an increase in total income, which rose by 7.74% to Rs 1,211.74 crore, up from Rs 1,124.72 crore in the previous year.
On the expenditure side, total expenses for the quarter saw a slight decrease to Rs 225.22 crore, according to the company’s regulatory filing.
The board has proposed a final dividend of Rs 160 per equity share along with an additional special dividend of Rs 375 per share, both based on a face value of Rs 10.
In terms of segment performance, the healthcare division exhibited robust growth, with revenue surging 17.6% to Rs 233.72 crore from Rs 198.74 crore last fiscal year.
The safety and industrial segment also performed admirably, growing by 14% to Rs 381.45 crore, compared to Rs 334.09 crore in Q4 FY24.
Point of View
It's crucial to recognize the underlying factors affecting 3M India's performance. The drastic drop in net profit highlights the impact of rising tax liabilities on businesses. However, the growth in revenue indicates resilience in certain segments, reflecting a complex yet nuanced financial landscape. Our commitment to delivering transparent reporting remains paramount, especially during challenging times for corporations.
NationPress
30/07/2025
Frequently Asked Questions
What caused the decline in 3M India's net profit?
The decline in 3M India's net profit was primarily due to a significant increase in tax expenses, which more than doubled compared to the previous year.
How did 3M India's revenue perform in Q4 FY25?
Despite the profit drop, 3M India's revenue from operations increased by 9.48%, reaching Rs 1,198.23 crore in Q4 FY25.
What dividends has 3M India declared?
The board of 3M India has recommended a final dividend of Rs 160 per equity share and an additional special dividend of Rs 375 per share.
How did the healthcare division perform?
The healthcare division of 3M India showed strong growth, with revenue rising 17.6% to Rs 233.72 crore from Rs 198.74 crore last fiscal year.
What was the full-year profit for 3M India?
For the entire financial year FY25, 3M India's net profit declined by 18.4% to Rs 476.06 crore.
