Adani Wilmar Q1 Profit Jumps 67% to Rs 156.75 Crore

Adani Wilmar reported a 67% rise in quarterly profit to Rs 156.75 crore despite declining revenue. For the fiscal year, however, profit declined to Rs 147.99 crore, along with a revenue decrease. Edible oil and food product sales grew in volume, contributing to the profit improvement. Food and FMCG revenue nearly doubled over two years, reaching Rs 5,000 crore. Improved branded mix in edible oils and recovery in Bangladesh operations also aided profitability. Revenue declined for edible oils and industry essentials but increased for food and FMCG products. The company's joint statutory auditors have resigned due to increased workload.

Adani Wilmar Ltd, which is mainly into edible oil and food-FMCG businesses, on Wednesday reported a 67 per cent increase in its consolidated net profit to Rs 156.75 crore for the quarter ended March despite lower revenue.

Its net profit stood at Rs 93.61 crore in the year-ago period.

The company's total income fell to Rs 13,342.26 crore in the January-March period of the last fiscal year from Rs 14,185.68 crore in the year-ago period, according to a regulatory filing.

During the 2023-24 fiscal, Adani Wilmar's net profit declined to Rs 147.99 crore from Rs 582.12 crore in the preceding year on lower revenue. Total income also fell to Rs 51,555.24 crore last fiscal from Rs 59,148.32 crore in the 2022-23 fiscal.

Adani Wilmar sells edible oils and some other food products under Fortune brands.

Commenting on the results, Adani Wilmar MD & CEO Angshu Mallick said, ''We continued to witness strong volume growth in our edible oils and foods business driven by increased retail penetration. A focused approach in sales & marketing and regional approach in each category is leading to gaining market share from the local players.

With fast-growing volumes, he said the company has achieved major milestones during the year.

''In fiscal FY’24, Food and FMCG business reached 1 million (10 lakh) tonnes in sales and overall company surpassed 6 million (60 lakh) tonnes in sales. Revenue in Food & FMCG segment has nearly doubled in the last 2 years to reach almost Rs 5,000 crores in FY’24,'' Mallick said.

Improvement in branded mix in edible oils has also led to better profitability for the company in the second half of the last fiscal, he said.

''The challenges faced by the company in Bangladesh operations have been overcome with the improved forex situation and fundamentals of the economy. The operations have come back to normalcy this quarter. Our brand “Rupchanda” remains the market leader in Bangladesh in the edible Oil category,'' Mallick said.

During the last fiscal year, the revenue for edible oils declined to Rs 38,788.33 crore from Rs 46,103.55 in 2022-23 on fall in prices of cooking oils. Revenue from industry essentials products fell to Rs 7,479.31 crore from, Rs 8,027.92 crore. However, the revenue of food and FMCG business grew to Rs 4,993.99 crore from Rs 4,053.34 crore.

In volume terms, sales of edible oils grew 9 per cent to 3.67 million tonnes in 2023-24 from 3.36 million tonnes in the preceding year. Sales of industrial essentials rose 8 per cent to 1.32 million tonnes from 1.23 million tonnes. Food and FMCG product sales went up 16 per cent to 1.03 million tonnes from 0.88 million tonnes.

In a separate filing, the company informed that Dharmesh Parikh & Co. LLP, Chartered Accountants, have resigned as the Joint Statutory Auditors of the company with effect from the close of business hours on 1st May 2024.

Dharmesh Parikh & Co was appointed as statutory auditor in August 2022 for five years. The CA firm in its letter said that it has resigned ''due to increase in professional preoccupation in other assignments''.

''Our resignation does not result from inability to obtain sufficient appropriate audit evidence. There are no other circumstances connected with our resignation which we consider should be brought to the notice of the Board,'' the CA firm said.

Adani Wilmar is a joint venture between the business conglomerate Adani Group and Singapores' Wimar Group.

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