Shares of 3M India skid 4.2 per cent to Rs 20,925 on the BSE on Friday after the company reported weak set of June quarter numbers. At 10:17 am, the stock was quoting 3.8 per cent lower at Rs 21,011, as against 0.45 per cent rise in the benchmark S&P BSE Sensex.
It’s standalone net loss came in at Rs 39.91 crore during the quarter under review, compared to Rs 84.9 crore profit in the year-ago period. Besides, it reported a pre-tax loss of Rs 54.17 crore, down from Rs 131 crore pre-tax profit reported in Q1FY20. Total income from operation (including other income) stood at Rs 326.6 crore, down from Rs 747.63 crore earned in Q1FY20.
“The April-June 2020 quarter was a challenging period owing to the unprecedented situation with broad-based declines in all our end-market segments. While we have seen sequential business improvement in May and June 2020, the outlook for the remainder of this financial year remains uncertain. At the same time, we continue to make selective investments to drive future growth. The Company is in the process of executing investments in the range of Rs 65 crores for local manufacturing of certain automotive BS-VI compliant emission control materials, as well as capacity expansion for hand-sanitizers and certain disinfectant materials,” said Ramesh Ramadurai, Managing Director at 3M India.
On a consolidated basis, it’s net loss was Rs 42.52 crore, as against Rs 90.13 crore-profit in the corresponding quarter of the previous fiscal.
As regards its cash reserves, the management said it maintained tight controls on discretionary spending and closely monitored its cash position. The standalone cash balance improved by about 9 per cent as of June 30, 2020 compared to Rs 665.77 crores as of March 31,2020.
The company approved appointment of Mamta Janak Gore, the present Chief Financial Officer (CFO) of the company, as Additional Director, categorized as Executive Director and as Whole-time Director, with effect from September 1, 2020 for 3 years and will be designated as Chief Financial Officer and Whole-time Director.
It also approved appointment of James Ernest Falteisek as Additional Director of the Company, categorized as Non- Executive, Non Independent Director with effect from September 1, 2020.