(Reuters) -Diversified products maker 3M India reported a 43% rise in second-quarter profit on Monday, led by strong demand across all its segments.
The company, which makes products ranging from “Post-it” notes to medical gear, benefitted from few branded rivals, as clients from hospitals to planemakers expanded operations and looked to India as a major plank of their growth strategy.
The Indian subsidiary of U.S. conglomerate 3M Company reported a profit of 1.91 billion rupees ($21.7 million) in the quarter ended September 30.
Its revenue climbed 14% year-on-year to 12.66 billion rupees, while expenses rose 8.7%.
“Company maintained higher spend levels during the quarter in sales and marketing to improve market penetration,” Managing Director Ramesh Ramadurai said.
Last month, the parent 3M Company raised its annual profit forecast for the second time this year on the back of a shift toward higher-margin products and tighter cost controls.
Sales in 3M India’s healthcare and consumer segments, which accounted for 21% and 11% of overall revenue, respectively, rose 14.9% and 14.6%.
Its biggest segment, transportation and electronics, which makes up about 34% of its overall revenue, saw a 12.9% jump in sales.
($1 = 87.8950 Indian rupees)
(Reporting by Vijay Malkar in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman)
