Adani Wilmar Q1 PAT rises 10% YoY despite several headwinds

4 Aug 2022 , 09:48 AM

EBITDA improved by 14% to Rs 49.6 crore in the first quarter from Rs 43.5 crore recorded in the same period last year. Profit before tax in Q1 FY23 stood at Rs 26 crore, up by 16% from Rs 22.5 crore in Q1 FY22. Consolidated volume stood at 1.19 MMT in Q1 FY23 compared to 1.03 MMT in Q1 FY22, registering a growth of 15%. Edible Oil business stood at 0.70 MMT, registering a growth of 6% y-o-y on volumes and revenues at Rs 11,519 crore, registering a growth of 23% on revenues. The moderate growth is despite several headwinds in the edible oil industry. Inflationary pressure was a key concern for the edible oil industry. Food & FMCG continued to lead the growth and now has a basket of Rs 860 crore for the quarter, registering a growth of 66% on revenues and 53% on volumes. Industry Essentials revenues stood at Rs 2,353 crore for the quarter, led by castor oil exports and oleo business. Overall volumes up by 22%, whereas revenues up by 67%. The company said that it has has paid off the entire portion of its long-term borrowing. ?This move will help in improving credit metrics and ratios, enabling us to explore funds at competitive pricing,? it added. Angshu Mallick, managing director and CEO, Adani Wilmar, 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. While still majority of staples and FMCG products are sold through general trade, we have seen a 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. There is finally some respite and signs of relief due to the softening of certain commodity prices, which may lead to better demand uptick in the coming quarter.? Adani Wilmar (AWL), a joint venture between Adani Group of India and Wilmar Group of Singapore, is one of the largest consumer food FMCG companies in India. The company has a diversified product portfolio offering most of the primary kitchen essentials including edible oil, wheat flour, rice, pulses, besan and sugar. The scrip fell 2.25% to currently trade at Rs 682 on the BSE. Powered by Capital Market – Live News