Adani Wilmar on Wednesday reported a 16 per cent year-on-year (YoY) rise in consolidated net profit at Rs 246 crore for the December quarter compared with Rs 211 crore in the corresponding quarter last year. Revenue for the quarter rose 7 per cent YoY to Rs 15,438 crore compared with Rs 14,371 crore in the same quarter last year. The Adani group company said volume for the quarter grew 16 per cent YoY, thanks to large opportunity available in the packaged food industry.
The Food & FMCG segment, which Adani Wilmar called the new growth engine, contributed 15 per cent of overall sales. The segment delivered a volume growth of 27 per cent.
“Both of our top product categories – Wheat Flour and Rice have been growing well on the back of increased distribution reach and new product launches,” it said.
Adani Wilmar said it continued to gain market share and witnessed satisfactory volume growth in the edible old segment, given the backdrop of weakness in demand for the baking and frying industry.
“Growth was enabled by a portfolio approach of having both premium and popular brands, as well as various types of edible oils, which usually see shift in consumer demand, basis their relative market price,” it said.
MD & CEO Angshu Mallick said: “We have been witnessing a consistent demand for safe, hygienic, and nutritious packaged staple food. We are leveraging the distribution network, manufacturing
facilities, logistics and customer relationships of edible oil business to grow rapidly in Food & FMCG business, which offers a much larger opportunity compared to our well-established edible oil business. We are also expanding our product portfolio with region specific products, ready-to-cook products, and category adjacencies.”
Mallick said his company is progressing well in the forward integration of its Industry essential
business, resulting in the growth in sales of specialty chemicals, in addition to the growth in basic oleochemicals from capacity expansion.
He noted that standalone volume for Adani Wilmar grew 17 per cent to 1.41 million tonnes, leading to Ebitda growth of 23 per centand PAT growth of 15 per cent. Increase in the benchmark rates during the year also increased the interest cost for the quarter, it said.
“The wholly owned subsidiary in Bangladesh made a loss of Rs 47 crore in Q3 and Rs 51 crore in ninee months of FY23. The December quarter loss was accentuated by local currency-related issues such as significant reduction in dollar availability for imports, price caps by government on edible oils, unavailability of counter party for forex hedging. This has resulted in lower consolidated PAT, compared to the standalone PAT,” the company said.
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