Adani Wilmar’s Q2 Profit Drops By 73%
It witnessed hike in its total expenses by 6 per cent to 141.5 billion rupees, whereas the revenue from operations surged by 4 per cent to 141.5 billion rupees. The company expects the second half of this fiscal year to be better with a recovery in consumer demand, even in its edible oils business
India’s Adani Wilmar recorded a sudden fall of 73 per cent in its second-quarter profit on 3 November. This happened due to fortune cooking oil maker facing struggle against dull demand from rural areas and wrestled with industry-wide input cost inflation.
Its consolidated net profit in the second quarter ending 30 September dropped to 487.6 million Indian rupees (5.88 million dollar) from 1.82 billion rupees a year ago.
It witnessed hike in its total expenses by 6 per cent to 141.5 billion rupees, whereas the revenue from operations surged by 4 per cent to 141.5 billion rupees. The decline in mainstay edible oil pulled down its growth’s speed. Adani Wilmar is a joint venture between Indian conglomerate Adani Group and Singapore’s Wilmar Group,
“In the edible oils segment, the quarter that went by saw multiple challenges in consumer demand with several macro headwinds in the form of high inflation … delayed monsoon and tepid rural demand,” Adani Wilmar said in a statement.
The company expects the second half of this fiscal year to be better with a recovery in consumer demand, even in its edible oils business.
“September 2022 witnessed higher edible oil imports of 1.59 MMT against 1.37 MMT in August 2022. We see positive signs of recovery going forward in edible oil business for H2FY23, with softening of commodity prices and the recent uptick in demand on the back of festivities and weddings,” the statement added.
It further said that “September 2022 witnessed higher edible oil imports of 1.59 MMT against 1.37 MMT in August 2022. We see positive signs of recovery going forward in edible oil business for H2FY23, with softening of commodity prices and recent uptick in demand on the back of festivities and weddings.”
In Thursday’s afternoon trading, shares of Adani Wilmar fell more than 2 per cent to 683 on the BSE, vs a 0.3 per cent decrease in the NSE Nifty 50.
