Share price of Adani Wilmar fell by 2 percent after the FMCG company posted a 73.3 percent on-year decline in consolidated net profit. The company's post-tax profit came in at Rs 48.7 crore in the quarter ended September 2022 as against Rs 182.3 crore in the same quarter last fiscal.
At 12:45 pm, the stock was quoting at Rs 681.90 apiece on the National Stock Exchange, down by 2.46 percent. However, the stock is up 154 percent in 2022 so far.
For the quarter, the company posted 4.4 percent rise in revenue from operations at Rs 14,150 crore as against Rs 13,558 crore in the year-ago period. “Despite the challenging external environment, we have registered strong volume growth of 9 percent in the high single digits in Q2FY23 riding on the growth in the Food & FMCG segment and Industry Essentials,” the company said.
In Q2FY23, the volume share of Food & FMCG went up to 16 percent and the management expects to take this to 30 percent over the next few years.
However, earnings before interest, taxes, depreciation, and amortisation, or EBITDA declined 40 percent YoY to Rs 254.5 crore while margins contracted to 1.8 percent from 3.3 percent in the same quarter last fiscal.
“Sharp fall in prices of palm oil, soyabean oil and sunflower oil left most of the players with high price inventory in hand. The company also passed on the benefit of lower prices to the consumers. This coupled with currency depreciation impacted margins during the quarter,” the company said.
Adani Wilmar sees positive signs of recovery in edible oils business for H2FY23, with softening of commodity prices and recent uptick in demand on the back of festivities and weddings.