Adani Wilmar Q1 - Volume Growth Recovers; Profitability Impacted Severely Due To One-Offs: ICICI Securities

ICICI Securities Report

Adani Wilmar Ltd. had another unusual quarter due to macro headwinds leading to revenue decline of 12% YoY (14% YoY decline in edible oil segment revenues).

Profitability continued to be impacted by multiple headwinds (~Rs 3 billion impact due to high cost inventory, hedges dis-alignment and tariff rate quota disparity).

Adani Wilmar expects profitability to normalise going forward. Positively, volume trajectory picked up with 27% YoY growth in edible oil segment.

Meanwhile foods segment continued its momentum with revenue and volume growth of 28% and 21% YoY, respectively.

Consumer demand and confidence have witnessed recovery (branded edible oil volumes grew by 39% YoY with increased salience of larger packs) with correction and stability in edible oil prices.

Maintain 'Reduce'.

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