Active Stocks
Sat Mar 02 2024 12:29:56
  1. Tata Steel share price
  2. 155.30 3.53%
  1. HDFC Bank share price
  2. 1,430.50 -0.05%
  1. State Bank Of India share price
  2. 773.40 0.53%
  1. ICICI Bank share price
  2. 1,084.60 -0.21%
  1. Axis Bank share price
  2. 1,095.00 -0.40%
Business News/ Companies / Company Results/  Adani Wilmar Q2 results: Net profit plunges 73% on cost rise; shares lower
BackBack

Adani Wilmar Q2 results: Net profit plunges 73% on cost rise; shares lower

Adani Wilmar shares plunged more than 2% to ₹683 on the BSE in Thursday's afternoon deals

iStockPremium
iStock

Adani Wilmar Ltd on Thursday reported a 73% slump in the second quarter profit, as the Fortune cooking oil maker reeled under dull demand from rural areas and wrestled with industry-wide input cost inflation. 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 climb more than 4% year-on-year (YoY) to 14,150 crore as against 13,558 crore. The growth pace has been dragged by a decline in mainstay edible oil. Meanwhile, its total expenses rose to 14,149.6 as compared to 13,354 crore in the corresponding quarter of the previous fiscal.

In Q2 FY23, Adani Wilmar Limited said it recorded 9% volume growth, and 5% revenue growth, which were primarily led by robust growth in Food and FMCG.

The company's market share in the Edible Oil segment grew by 30 basis points (bps) to 18.5% on a standalone basis and 19.5% on a consolidated basis.

Adani Wilmar said that it witnessed multiple headwinds on the margin front, with the high volatility in edible oil prices, allotment of lower TRQ (Tariff Rate Quota) and inflation impact on its operating expenses.

"In the edible oils segment, the quarter that went by saw multiple challenges in consumer demand with several macro headwinds in the form of high inflation, delayed monsoon and tepid rural demand," Adani Wilmar said in a statement. Adani Wilmar expects the second half of this fiscal year to be better with a recovery in consumer demand, even in its edible oils business.

Shares of Adani Wilmar plunged more than 2% to 683 on the BSE in Thursday's afternoon deals as compared to about 0.3% decline in NSE Nifty 50.

“September 2022 witnessed higher edible oil imports of 1.59 MMT against1.37 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," the company shared as its near-term outlook.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 03 Nov 2022, 01:20 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie