Edible oils giant Adani Wilmar reported a 25.6% decline in consolidated net profits for the quarter ended in March 2022. Profits for this quarter stood at Rs 234.3 crores against Rs 315 crores for the corresponding quarter last year.

Adani Wilmar is a 50:50 joint venture between Adani Group of India and Wilmar International of Singapore. It was established in 1999 and manufactures some of the most essential kitchen commodities like edible oil, wheat, flour, rice, pulses, and sugar. 'Fortune', India's largest edible oil brand is managed by the company. It is the largest importer of crude edible oil in India and the largest exporter of castor oil and its derivatives.

The company also reported a 40.2% growth in revenues, Rs 14,960.2 crores. Even though the industry has shown a significant slowdown due to the Russia-Ukraine war and global supply chain issues, the company's flagship brand Fortune managed to grow 16% YoY.

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The company's expenses grew 40.3% to Rs 14,726.7 crores. Out of all expenses, the cost of raw materials saw the greatest surge, jumping around 40% while other major expenses saw a 26% rise. The company's consolidated operating profit grew 29% YoY to Rs 488 crores.

The cause of its lower profits was because the profit last year was higher than it should have been due to a tax write-back of Rs 93 crores on account of switching to the corporate tax regime. If the one-time tax write-back is adjusted, the profits of the company grew 39% YoY, instead of declining 26%.

After the current quarter, Adani Wilmar's annual revenues reach a total of Rs 54,214 crores, up 46.2% YoY. HUL, heralded as India's largest FMCG brand, had reported an annual revenue figure of Rs 51,468 crores, to become the first Indian FMCG brand to cross Rs 50,000 crores in revenues. After yesterday's results, Adani Wilmar has taken the spot of the top FMCG company in India.

Adani Wilmar's IPO was considered a huge success as it rose 18.2% on its opening day in February 2022. The stock surged 67.84% in a span of 4 days. Nowadays the share has seen a slight selling pressure as it fell around 12.37% in the last 3 days. The stock trades around Rs 753 currently, giving investors a gain of roughly 232% in 3 months! 

Article by Aman Agarwal.

This news piece is brought to you in association with jobaaj.com

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