Adani Wilmar Ltd on Wednesday reported a consolidated net loss of Rs 131 crore for the quarter ended September 30, adversely impacted by loss in the edible oil segment. The Adani group firm had reported a consolidated profit of Rs 49 crore in the same quarter last year. Revenue for the quarter, the Adani group firm said, fell 13 per cent year-on-year (YoY) to Rs 12,267 crore compared with Rs 14,150 crore in the corresponding quarter last year.
Ebitda for the quarter came in at Rs 144 crore (excluding extraordinary item of entry Tax of Rs 54 crore), down 43 per cent YoY over Rs 254 crore in the year-ago quarter. Adani Wilmar said its profitability was adversely impacted by loss in the edible oil segment, which was partially offset by better margins in the Food & FMCG and industry essential segments. Edible oil losses, it said, were primarily driven by divergent trends in the spot and future prices, resulting in hedging losses.
By 1.45 pm, the stock was trading at Rs 320.40, down 2.08 per cent. This was the third day of fall for the Adani stock.
It expects the profitability of the edible oils segment to come back to normal levels in terms of gross margin and Ebitda per tonnes soon. Food & FMCG and Industry Essentials are expected to continue profitability momentum, it told stock exchanges.
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MD & CEO, Adani Wilmar Angshu Mallick said: “We continued the growth momentum across all the business categories, amidst the challenging environment in the edible oils segment. The Company gained market share across most of the edible oil & food categories, given the immense focus on expanding our direct reach and rural town coverage. We see a huge potential for packaged oils & foods in the rural markets.”
Mallick said 30 per cent of Adani Wilmar sales comes from rural towns, wherein more than 70 per cent population resides. In the past 6 months, Adani Wilmar added over 13,000+ towns, he said.
Adani Wilmar said its revenues from the branded products under the Food & FMCG segment grew over 40 per cent in the past eight quarters. Adani Wilmar said it was building its branded exports business.
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“The out-of-home consumption continues to grow with our HoReCa business showing volume growth of over 50 per cent-plus on a QoQ basis,” Mallick said.
