• Shares of Adani Wilmar fell over 2% to ₹683 on BSE in Thursday afternoon deals
Adani Wilmar Ltd on Thursday reported a 73% fall in second-quarter profit as the fortune cooking oil maker was battling industry-wide input cost inflation due to sluggish demand from rural areas. The company's consolidated net profit for the second quarter ended September 2022 or Q2 FY23 fell to ₹48.7 crore from ₹182 crore a year ago.
Adani Wilmar, a joint venture between Indian conglomerate Adani Group and Singapore's Wilmar Group, saw revenue from operations grow more than 4% year-on-year (YoY) to ₹14,150 crore as against ₹13,558 crore. The slowdown in growth has been due to the decline in the mainstay edible oil. Meanwhile, its total expenditure rose to Rs 14,149.6 as against Rs 13,354 crore in the corresponding quarter of the previous fiscal.
In Q2 FY23, Adani Wilmar Ltd said it recorded 9% volume growth and 5% revenue growth, mainly on account of strong growth in Food and FMCG.
The company's market share in the edible oils segment grew by 30 basis points (bps) to 18.5% on a standalone basis and 19.5% on a consolidated basis.
Adani Wilmar said it saw several headwinds on the margin front, with higher volatility in edible oil prices, lower TRQ (tariff rate quota) allocation and the impact of inflation on its operating expenses.
"In the edible oil segment, consumer demand faced several challenges in the last quarter, with multiple macro headwinds in the form of high inflation, delayed monsoon and sluggish rural demand," Adani Wilmar said in a statement. Adani Wilmar expects consumer demand to improve in the second half of this fiscal, even in its edible oils business.
Shares of Adani Wilmar fell over 2% to ₹683 on the BSE in Thursday afternoon deals, while the NSE Nifty 50 was down nearly 0.3%.
“September 2022 saw high edible oil imports of 1.59 MMT as against 1.37 MMT in August 2022. We see positive signs of recovery for H2FY23 in edible oils business, with softening commodity prices and demand on the back of festivities With the recent uptick in more weddings," the company shared as to its near-term outlook.
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