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3M INDIA 2021-22 Annual Report Analysis
Tue, 2 Aug

3M INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

3M INDIA Income Statement Analysis

  • Operating income during the year rose 28.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 50.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY22 as against 10.0% in FY21.
  • Depreciation charges decreased by 10.9% and finance costs increased by 51.6% YoY, respectively.
  • Other income grew by 50.0% YoY.
  • Net profit for the year grew by 67.5% YoY.
  • Net profit margins during the year grew from 6.2% in FY21 to 8.2% in FY22.

3M INDIA Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 26,048 33,358 28.1%
Other income Rs m 247 371 50.0%
Total Revenues Rs m 26,296 33,730 28.3%
Gross profit Rs m 2,595 3,892 50.0%
Depreciation Rs m 618 551 -10.9%
Interest Rs m 25 37 51.6%
Profit before tax Rs m 2,199 3,675 67.1%
Tax Rs m 575 955 66.0%
Profit after tax Rs m 1,624 2,720 67.5%
Gross profit margin % 10.0 11.7
Effective tax rate % 26.2 26.0
Net profit margin % 6.2 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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3M INDIA Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 10.4%.
  • Current assets rose 14% and stood at Rs 24 billion, while fixed assets rose 11% and stood at Rs 5 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 30 billion as against Rs 26 billion during FY21, thereby witnessing a growth of 13%.

3M INDIA Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 19,103 21,836 14.3
 
Current Liabilities Rs m 6,886 7,605 10.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 26,207 29,731 13.4
 
Current assets Rs m 21,377 24,370 14.0
Fixed Assets Rs m 4,830 5,361 11.0
Total Assets Rs m 26,207 29,731 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



3M INDIA Cash Flow Statement Analysis

  • 3M INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 2.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -407 million, an improvement of 187.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -212 million, an improvement of 15% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs 3 billion net cash flows seen during FY21.

3M INDIA Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 3,211 3,274 2.0%
Cash Flow from Investing Activities Rs m -142 -407 -
Cash Flow from Financing Activities Rs m -250 -212 -
Net Cash Flow Rs m 2,819 2,654 -5.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for 3M INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 241.3, an improvement from the EPS of Rs 144.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 22,765.2, stands at 94.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 7.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 86.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 2,311.3 2,959.9
TTM Earnings per share Rs 144.1 241.3
Diluted earnings per share Rs 144.1 241.4
Price to Cash Flow x 151.9 86.7
TTM P/E ratio x 209.8 94.3
Price / Book Value ratio x 14.0 13.0
Market Cap Rs m 267,659 283,519
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for 3M INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.2x during FY22, from 3.1x during FY21. 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 99.8x during FY22, from 90.6x during FY21. 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 12.5% during FY22, from 8.5% during FY22. 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 improved and stood at 17.0% during FY22, from 11.6% during FY21. 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 9.3% during FY22, from 6.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 3.1 3.2
Debtors’ Days Days 685 577
Interest coverage x 90.6 99.8
Debt to equity ratio x 0.0 0.0
Return on assets % 6.3 9.3
Return on equity % 8.5 12.5
Return on capital employed % 11.6 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 24,687.0 to Rs 22,765.2, registering a loss of Rs 1,921.8 or around 7.8%.

Overall, the S&P BSE SENSEX is up 10.4% over the year.

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

Annual Report FAQs

What is the current share price of 3M INDIA?

3M INDIA currently trades at Rs 0.0 per share. You can check out the latest share price performance of 3M INDIA here...

What was the revenue of 3M INDIA in FY22? How does it compare to earlier years?

The revenues of 3M INDIA stood at Rs 33,730 m in FY22, which was up 28.3% compared to Rs 26,296 m reported in FY21.

3M INDIA's revenue has grown from Rs 27,880 m in FY18 to Rs 33,730 m in FY22.

Over the past 5 years, the revenue of 3M INDIA has grown at a CAGR of 4.9%.

What was the net profit of 3M INDIA in FY22? How does it compare to earlier years?

The net profit of 3M INDIA stood at Rs 2,720 m in FY22, which was up 67.5% compared to Rs 1,624 m reported in FY21.

This compares to a net profit of Rs 3,222 m in FY20 and a net profit of Rs 3,662 m in FY19.

Over the past 5 years, 3M INDIA net profit has grown at a CAGR of -5.0%.

What does the cash flow statement of 3M INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of 3M INDIA reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 3,274 m as compared to Rs 3,211 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -407 m as compared to Rs -142 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -212 m as compared to Rs -250 m in FY21.

Here's the cash flow statement of 3M INDIA for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations3622,5302,4503,2113,274
From Investments251-5,53427-142-407
From Financial Activity-2132-246-250-212
Net Cashflow592-2,9722,2312,8192,654

What does the Key Ratio analysis of 3M INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of 3M INDIA reveals:

  • Operating profit margins witnessed a fall and down at 11.7% in FY22 as against 10.0% in FY21.
  • Net profit margins grew from 6.2% in FY21 to 8.2% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of 3M INDIA for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)18.517.815.110.011.7
Net Profit Margin (%)12.212.110.86.28.2
Debt to Equity Ratio (x)0.00.00.00.00.0

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