Shares of 3M India soared 6.5 percent in early trade on September 27 after the company announced that the royalty payable to its parent, US-based 3M Co and 3M Innovative Properties Co will be reduced to 1.95 percent of its total turnover.
Previously, 3M India was liable to pay 2.4 percent of its total turnover as a royalty fee to its parent companies. In the previous fiscal, royalty was 1.54 percent of turnover, largely due to lower interest rates in FY23.
At 12.14 pm, shares of 3M India were trading over 3 percent higher at Rs 31,794.60 on the National Stock Exchange. Gains in the counter were also accompanied by strong volumes as 5,000 shares changed hands so far, higher than the one-month daily traded average of 1,000 shares.
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The Bengaluru-based company recorded an over 53 percent jump in its net profit for the June quarter to Rs 129 crore, as against Rs 84 crore in the year-ago period. The spike in net profit was supported by a strong demand in its transportation and electronics safety and industrial verticals.
Revenue from the flagship transportation and electronics segment, rose nearly 13 percent on year to Rs 413 crore. On the other hand, revenue from the safety and industrial business, was up nearly 6 percent on year to Rs 329 crore, making up over 31 percent of the total revenue.
Overall, the company's top line was up around 11 percent year-on-year to Rs 1,050 in the June quarter.
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