Adani Wilmar's Q4 net profit surges 59% to ₹156 crore
What's the story
Adani Wilmar, a joint venture between Adani Enterprises and Wilmar International, has reported a significant 59% increase in its standalone net profit for the quarter ending March 31, 2024.
The net profit rose to ₹156 crore from ₹98 crore during the same period last year.
Despite this profit surge, the Gautam Adani-led company's operational revenue saw a slight decrease of 3%, falling to ₹12,703.64 crore from ₹13,121.89 crore in the corresponding quarter of the previous fiscal year.
Revenue analysis
Revenue dip attributed to decline in oil meal exports
The 3% dip in Adani Wilmar's operational revenue was primarily due to a significant decrease in oil meal exports. However, the company saw growth in other sectors.
The edible oils sector witnessed an 11% increase, while Food & FMCG volumes grew by 9%.
The company attributes these gains to regional marketing strategies and digitalization that have enhanced their market share, particularly in sunflower oil.
Segment breakdown
Edible oil sector reported a revenue of ₹38,788cr for FY24
The edible oil sector of Adani Wilmar reported a revenue of ₹10,195 crore in Q4 and ₹38,788 crore for FY24.
Volume growth was recorded at 11% YoY for Q4 and 9% YoY for FY'24.
The Food & FMCG segment posted a revenue of ₹1,341 crore in Q4 with an underlying volume growth of 9% YoY for the quarter.
Notably, domestic branded sales volume saw an accelerated growth rate of 13% YoY in FY24.
Market reaction
Industry essentials segment and stock market response
The Industry Essentials segment of Adani Wilmar reported a revenue of ₹1,702 crore in Q4 and ₹7,479 crore in FY24.
However, this segment experienced a volume decrease of 22% YoY in Q4, largely due to a 45% decline in the oil meal business.
Despite mixed results, Adani Wilmar's shares closed over 4% higher at ₹357.45 each on BSE on Tuesday.
The Indian stock market was closed today on account of Labor Day.