Adani Wilmar registered a 10.18% rise in net profit to 193.59 crore in the quarter ending June 30, 2022 (Q1FY23) compared to the profit of 175.70 crore witnessed in the same period last year. However, Q1 PAT dropped by 17.37% from 234.29 crore in Q4FY22. In terms of the top-line front, the company recorded strong growth in volume and revenues in Q1 of FY2023, on the back of robust performance by FMCG and Foods businesses.
Consolidated revenue from operations climbed by a whopping 30.23% to 14,731.62 crore in Q1FY23 against 11,311.97 crore in Q1 last year. However, the revenue was marginally down by 1.53% from 14,960.37 crore in the preceding quarter.
Food and FMCG revenue stood at 860 crore in the quarter under review – registering a growth of 66% yoy. While edible oil business revenue was up 23% yoy to 11,519 crore, and industry essentials revenue increased 67% yoy to 2,353 crore led by castor oil exports and oleo business.
Angshu Mallick, Managing Director, and CEO of Adani Wilmar Limited said, “Adani Wilmar has continued to demonstrate a steady growth on overall volumes, led by an exceptional growth in the foods business. This is despite multiple headwinds that we saw during the quarter with inflation and low consumer offtake being the major concern areas. Our growth has been driven by GTM strategy focused on increased penetration in the semi-urban & rural regions. This increased penetration is also enabling us to grow the foods business at a faster pace.”
The company’s overall volumes climbed by 15% to 1.19 MMT in Q1FY23 versus 1.03 MMT of the same period last year. In Q1FY23, on segment-wise, edible oil volumes jumped 6% yoy, while Food & FMCG business volumes soared by a whopping 53% yoy, and industry essentials volumes surged 22% yoy.
Mallick added, “While still the majority of staples and FMCG products are sold through general trade, we have seen double-digit growth in sales through e-commerce and modern trade. Sales of our new products such as Poha, Khichdi, Total Balance Oil, Soya Chunkies etc., have doubled on a year-on-year basis, though on a low base.”
Going forward, Adani Wilmar expects an uptick in the demand in Q2FY23 on the back of festivities and weddings across the country. The company particularly expects growth in demand from rural markets, with expectations of a good monsoon. Further, it expects categories like functional oils/health oils such as rice-bran oil, mustard oil, and blended oils to grow faster.
On BSE, Adani Wilmar shares closed at 697.70 apiece down by 12.25 or 1.73%. The company’s market cap is around 90,678.58 crore.
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