 "Adani Wilmar")
Adani Wilmar on Wednesday reported a 60 per cent fall in its consolidated net profit to Rs 93.6 crore in the quarter ended March 31, as compared to Rs 234.29 crore in the same quarter in 2021-22 (FY22).
In the year ended March 31, 2023, the company's net profit fell 28 per cent to Rs 582 crore as compared to Rs 804 crore in FY22. The company's industry essentials segment saw a growth in volumes of 34 per cent in the whole year. The volumes in its food and FMCG business grew 39 per cent. However, its edible oil segment saw a volume rise of three per cent.
"Our margins...got impacted by high-cost inventory in a falling edible oil price environment, inflation impact on our operational costs and an increase in interest costs due to rate hike," said Adani Wilmar chief executive officer (CEO) Angshu Mallick.
The revenue from operations was down seven per cent in the Q4FY23, to Rs 13,873 crore. In the year, however, the revenue was up seven per cent to Rs 58,185 crore. The company attributed the fall in revenue to the fall in edible oil prices.
Edible oil prices have cooled off in recent months on the back of easing commodity prices, but demand is yet to fully recover as some customers including in the bakery and frying industry are cutting back.
During the quarter, the edible oil business saw no change in volumes. The food and FMCG business saw a growth of 38 per cent and the industry essentials segment recorded a growth of 55 per cent in volume year-on-year (YoY).
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Separately, Adani Wilmar said the board re-appointed Mallick as the managing director and CEO for a period of three years, effective April 1.
Adani Wilmar shares have lost about a third of their value since January 24 after US short seller Hindenburg Research put out a critical report about the Adani Group's finances.
Adani Wilmar is a joint venture between Adani Group and Singapore's Wilmar Group. The stock declined more than 2% on Wednesday.
(With agency inputs)
