Adani Wilmar Q4FY23 PAT lower at Rs94cr as sales and operating margins of edible oils fall sharply

Adani WIlmar reported -7.00% fall in total sales revenues for the March 2023 quarter on consolidated basis at Rs13,873cr. On a sequential basis, the revenues were down by -10.1%. The sharp fall in sales was led by a fall in the sales of edible oils even as the revenues from the food vertical, the FMCG vertical and the industry essentials were robust. Edible oils, which accounted for bulk of the operating profits, saw profits fall by nearly three-fourth due to higher costs and lower sales. 

Edible volumes had flat volumes in Q4, but due to pricing pressures, the sales revenues fell sharply, impacting the operating profits. Also, the sharp fall in edible oil prices meant that the company had to mark down its inventory leading to further losses. The company also faced higher interest costs due to a spike in the cost of fund in tune with repo rates.

Financial highlights for Mar-23 compared yoy and sequentially

 Adani Wilmar    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 13,873

₹ 14,917

-7.00%

₹ 15,438

-10.14%

Operating Profit (Rs cr)

₹ 136

₹ 394

-65.55%

₹ 350

-61.23%

Net Profit (Rs cr)

₹ 94

₹ 234

-60.05%

₹ 246

-61.97%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 0.72

₹ 2.01

 

₹ 1.89

 

OPM

0.98%

2.64%

 

2.27%

 

Net Margins

0.67%

1.57%

 

1.59%

 

 

The reduced demand from the bakery and the frying industry actually dragged down the demand for edible oils. However, the Food and FMCG segment grew 39% in volume terms and 55% in revenue terms, albeit on a much lower base. Alternate channels like ecommerce, modern trade and e-B2B serving have bene growing at a much faster clip. Industry essentials or the oleochemicals business also saw strong growth in the fourth quarter.

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