Adani Wilmar Ltd.'s returned to profit in the first quarter of the current fiscal, beating estimates, as operational profitability improved nearly four times.
The Fortune cooking oil maker reported a profit of Rs 313.2 crore in the quarter ended June as compared to a loss of Rs 78.92 crore in the corresponding quarter of the previous fiscal, according to an exchange filing. The consensus of analysts' estimates polled by Bloomberg projected a profit of Rs 170.5 crore.
Adani Wilmar Q1 Results: Key Highlights (Consolidated, YoY)
Revenue up 9.59% to Rs 14,168.5 crore. (Bloomberg estimate: Rs 14,332 crore)
Ebitda up 374.5% to Rs 618.78 crore. (Bloomberg estimate: Rs 447.8 crore)
Margin expands 335 basis points to 4.36%. (Bloomberg estimate: 3.1%)
Net profit of Rs 313.2 crore versus loss of Rs 78.92 crore. (Bloomberg estimate: Rs 170.5 crore)
Segmental Performance
Edible Oils
In the first quarter, the edible oil segment revenue rose to 8% year-on-year to Rs 10,649 crore, with an underlying volume growth of 12% year-on-year to 1 million metric tonne. This represents the second consecutive quarter of double-digit volume growth, resulting in an increase in market share.
Food And FMCG
Revenue of Food & FMCG segment increased to 40% to Rs 1,533 crore, with an underlying volume growth of 42% year-on-year. Revenue from branded Food & FMCG products in the domestic market has consistently grown at a rate exceeding 30% year-on-year for the past eleven quarters. The company anticipates that this strong growth trajectory will persist.
Industry Essentials
The Industry Essentials segment’s revenue stayed flat at Rs 1,986 crore in the first quarter. While the Oleo-chemicals and Castor businesses witnessed strong double-digit growth, the segment’s overall volume declined by 6% year-on-year, mainly due to a 22% drop in the oil meal business.
“The consumer shift to branded staples is benefiting us significantly," said Managing Director and Chief Executive Officer Angshu Mallick. "We have delivered another strong quarter, with double digit growth in both edible oils and Food & FMCG segments."
"The stability in edible oil prices augurs well for our business, allowing us to deliver strong profits over the past three quarters," he said. "With our trusted brand, Fortune, we expect continued market share gains from regional brands. Our Food products are making significant inroads into Indian households, and we plan to meet this large demand by enhancing our food distribution through our edible oil network."
"In under two years since launching our dedicated HORECA distribution channel, we have surpassed Rs 500 crore in revenue on a last 12-month basis and achieved a 90% year-on-year volume increase in Q1.”
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