Adani Wilmar Q1 Results: Firm posts loss of Rs 79 crore; revenue falls 12% YoY

Adani Wilmar has reported a consolidated net loss of Rs 79 crore in the June 2023 quarter. The company posted a profit of Rs 194 crore in the last year quarter.

Revenue from operations during the quarter fell 12% year-on-year (YoY) to Rs 12,928 crore, reflective of a steep decline in edible oil prices.

The profitability took a hit mainly due to a fall in edible oil prices, which led to high-cost inventory, surging interest expenses, and TRQ disparity.


The company recorded 25% volume growth in the June quarter, with broad-based growth across all segments.

Revenue from the edible oils business fell 14% YoY to Rs 9,845 crore, while that from industry essentials dropped 16% YoY to Rs 1,986 crore.
The Food and FMCG segment, however, recorded revenue growth of 28% YoY to Rs 1,097 crore in the reporting period.

“We have regained the momentum in our edible oil business with the decline in the edible oil prices. The soft prices of edible oil are expected to augur well for the industry. The company is gaining good share from regional brands in the under-indexed customer segments with marketing and sales focus on specific geographies and oil categories," said Angshu Mallick, MD and CEO, Adani Wilmar.

The company said both urban and rural areas have witnessed strong demand during the quarter.

The oil and foods continued to grow at a rapid pace in the alternate channels and recorded around 50% YoY volume growth in the June quarter.

The margins during the quarter at 1.01% also got hit by high-cost inventory in a falling edible oil price environment and dis-aligned hedges compared to spot prices of physical commodities.

Adani Wilmar said the distribution expansion, gaining share in under-indexed markets, and margin improvement will be the key priorities going forward in the consumer pack segment in both edible oil and food segments.

On Wednesday, the company's shares were trading 2.70% lower at Rs 401.95 on NSE.