Shares of Adani Wilmar plunged nearly 3 per cent in afternoon session today after the Adani Group firm reported a 73 percent fall in net profit for the quarter ended September. Net profit slipped to Rs 49 crore against Rs 182 crore profit in the second quarter of the previous fiscal. However, revenue rose 5% to Rs 14,209 crore in Q2 against Rs 13,584 crore in the September quarter of the previous fiscal.
Adani Wilmar stock fell 2.81 per cent to Rs 678.80 against the previous close of Rs 698.45 on BSE. A total of 1.75 lakh shares of the firm changed hands amounting to a turnover of Rs 12.09 crore on BSE. Market cap of the firm fell to Rs 88,839 crore on BSE.
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Adani Wilmar stock is trading higher than 5-day, 100-day and 200-day moving averages but lower than 20-day and 50-day moving averages. The share hit a high of Rs 878.35 on April 28, 2022.
Considering the current market price, the stock has lost 22.71 per cent from the yearly high. EBITDA for the Adani Group firm fell 40.8% to Rs 254.5 crore in Q2 against Rs 430 crore in the corresponding quarter of the previous fiscal.
The company said it reported 9 per cent volume growth and 5% revenue growth, primarily led by robust growth in food & FMCG segments.
“A significant contribution came from Food & FMCG as well as industry essentials, which grew robustly at 41% and 22% y-o-y, respectively – thereby driving larger diversification in the revenue base and strengthening the platform for multiple business growth drivers in the future,” the edible oil firm said.
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The company is positive on the near-term outlook.
“September 2022 witnessed higher edible oil imports of 1.59 MMT against 1.37 MMT in August 2022. We see positive signs of recovery going forward in edible oils business for H2FY23, with softening of commodity prices and recent uptick in demand on the back of festivities and weddings,” it said.
On October 12, in its September quarter update, the edible oil major said its overall revenue in Q2 would grow by low single-digit annually amid a fall in the rates of edible oils.
Adani Wilmar said prices of edible oils, namely palm oil, soyabean oil and sunflower, declined sharply in the September quarter and are now trending more or less at pre-Covid levels. “We saw the prices of palm oil and soyabean oil drop sharply from the highs of $1,750 and $1,850 in June to $850 and $1,100 a tonne by the end of September 2022,” the company said adding that it passed on the benefit of lower prices to customers in a bid to protect market share.
Adani Wilmar Ltd is a joint venture between Adani Group and Wilmar Group of Singapore. It is engaged in the manufacturing of edible oil, wheat flour, rice, pulses, and sugar. The company also owns the popular brand Fortune.