3M INDIA 2023-24 Annual Report Analysis

Wed, 17 Jul

3M INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

3M INDIA Income Statement Analysis

• Operating income during the year rose 5.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.9% in FY24 as against 15.3% in FY23.
• Depreciation charges decreased by 8.2% and finance costs decreased by 55.7% YoY, respectively.
• Other income grew by 25.6% YoY.
• Net profit for the year grew by 29.4% YoY.
• Net profit margins during the year grew from 11.4% in FY23 to 13.9% in FY24.

3M INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	39,594	41,894	5.8%
Other income	Rs m	681	855	25.6%
Total Revenues	Rs m	40,275	42,749	6.1%
Gross profit	Rs m	6,043	7,519	24.4%
Depreciation	Rs m	577	529	-8.2%
Interest	Rs m	73	32	-55.7%
Profit before tax	Rs m	6,074	7,812	28.6%
Tax	Rs m	1,564	1,978	26.5%
Profit after tax	Rs m	4,510	5,834	29.4%
Gross profit margin	%	15.3	17.9
Effective tax rate	%	25.8	25.3
Net profit margin	%	11.4	13.9

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3M INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 8.1%.
• Current assets rose 25% and stood at Rs 27 billion, while fixed assets fell 1% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 20%.

3M INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,775	21,469	28.0
Current Liabilities	Rs m	9,803	10,595	8.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,871	32,204	19.8
Current assets	Rs m	21,274	26,685	25.4
Fixed Assets	Rs m	5,597	5,519	-1.4
Total Assets	Rs m	26,871	32,204	19.8

3M INDIA Cash Flow Statement Analysis

• 3M INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 38.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 1,641.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -5 billion net cash flows seen during FY23.

3M INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	4,655	6,430	38.1%
Cash Flow from Investing Activities	Rs m	-155	-2,694	-
Cash Flow from Financing Activities	Rs m	-9,797	-1,276	-
Net Cash Flow	Rs m	-5,297	2,461	-

Current Valuations for 3M INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 517.7, an improvement from the EPS of Rs 400.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38,798.1, stands at 74.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 20.4 times, while the price to sales ratio stands at 10.4 times.
• The company's price to cash flow (P/CF) ratio stood at 54.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	3,513.2	3,717.3
TTM Earnings per share	Rs	400.2	517.7
Diluted earnings per share	Rs	400.4	517.9
Price to Cash Flow	x	51.0	54.8
TTM P/E ratio	x	57.5	74.9
Price / Book Value ratio	x	14.3	16.3
Market Cap	Rs m	239,609	349,008
Dividends per share (Unadj.)	Rs	950.0	685.0

Ratio Analysis for 3M INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.2x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 243.8x during FY24, from 84.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 27.2% during FY24, from 26.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 36.5% during FY24, from 36.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 18.2% during FY24, from 17.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.2	2.5
Debtors’ Days	Days	585	613
Interest coverage	x	84.6	243.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	18.2
Return on equity	%	26.9	27.2
Return on capital employed	%	36.6	36.5

To see how 3M INDIA has performed over the last 5 years, please visit here.

3M INDIA Share Price Performance

Over the last one year, 3M INDIA share price has moved up from Rs 28,264.2 to Rs 38,798.1, registering a gain of Rs 10,534.0 or around 37.3%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for 3M INDIA and quarterly results for 3M INDIA)