Adani Wilmar Ltd.'s first-quarter margin expanded on successive price hikes even as revenue declined owing to subdued edible oil consumption.
Consolidated revenue of the owner of the 'Fortune' brand fell 2% sequentially to Rs 14,731.62 crore in the quarter ended June, according to its exchange filing. Year-on-year, however, revenue rose 30%.
Q1 FY23 Highlights (QoQ)
Net profit fell 17% to Rs 193.59 crore.
Operating profit rose 4% to Rs 44,309 crore.
Margin stood at 3% vs 2.8%.
Cost of materials consumed fell 14.76% to Rs 11,156.38 crore. But it is higher than the Rs 9,923.08 crore-worth of materials consumed in the corresponding period of the previous fiscal.
Revenue from edible oil business fell 7.2% to Rs 11,518.72 crore, while that from the food and FMCG business grew 13.65% to Rs 859.98 crore.
During the first quarter, the company said volumes grew 15% year-on-year to 1.19 million metric tonnes. While edible oil business saw 6% year-on-year volume growth at 0.7 MMT, food and FMCG volumes grew 53% to 0.19 MMT.
"Adani Wilmar has continued to demonstrate a steady growth on overall volumes, led by an exceptional growth in the foods business," said Angshu Mallick, managing director and chief executive officer, Adani Wilmar. "This is despite multiple headwinds that we saw during the quarter with inflation and low consumer offtake being the major concern areas."
There is, however, finally some respite and signs of relief due to the softening of certain commodity prices, he said, which may lead to better demand uptick in the coming quarter. "We expect uptick in the demand in Q2 FY23 on the back of festivities and weddings across the country. We particularly expect growth in demand from rural markets, with expectations of a good monsoon," Mallick said.
After Covid-19, according to the company, there is consistent growth in e-commerce as well as modern trade. While e-commerce grew 23%, the modern trade channel grew at 21% over the year ago, the company said.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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