Adani Wilmar Q3 Update: Estimated To Record Best-Ever Volume, Rural Sales Robust

Adani Wilmar Ltd. estimates that elevated demand from the festive and wedding seasons benefited the company in the branded oil and foods segment, and it recorded the best-ever volume during the quarter.

"During the quarter, the company recorded overall volume growth of 6%," the consumer goods business of billionaire Gautam Adani said in its quarterly business update on Friday.

Rural sales were robust with continued demand for branded staples, it said.

However, its revenue is expected to decline 15% year-on-year in the third quarter due to lower pricing of edible oil, in line with the fall in the cost of raw materials.

Branded edible oil volume growth has been strong during the year, with 4% YoY growth during the quarter, while volume stayed flat in the overall edible oil segment due to subdued demand from institutional clients.

The food and FMCG segment revenue grew by 28% YoY during the quarter, despite the drag of restrictions on rice exports. Volume growth stood at 18%.

Sales of industry essentials were flat, while volume growth was up 15%.

The six-month-long wedding season in India is expected to boost Adani Wilmar's sales, as edible oil prices are "comfortable," Angshu Mallick, managing director and chief executive of Adani Wilmar, told NDTV Profit last month.

This demand gives a lot of buoyancy to consumption, which will continue till mid-April, he said.