Adani Wilmar Q2FY24 Results, Adani Wilmar, Adani Wilmar shares, Adani Wilmar share price, gautam adani,

The share price of Adani group firm Adani Wilmar closed almost 4% at Rs 315.25 per share on Wednesday after the company reported its results for the quarter ended September 30, 2023.

In Q2FY24, the company's gross profit rose 4% (Quarter-on-Quarter) at Rs 1,223 crore; but fell 9% (year-on-year). The Adani group firm's revenue dropped 4% QoQ at Rs 12,267 crore. In terms of YoY performance Adani Wilmar's revenue fell 13%.

According to the company, the company's profitability was adversely impacted due to loss in the edible oil segment, which was partially offset by better margins in the Food & FMCG and industry essential segments. Edible Oil losses were primarily driven by divergent trends in the spot (physical) and future prices, resulting in hedging losses.
The company's net loss in the September quarter included a one-time loss of Rs 53.5 crore.

On the operational front, the company's EBITDA during the quarter ended September 2023 fell 43% to Rs 144 crore from Rs 254 crore in Q2FY23, while the EBITDA margin contracted to 1.2% from 1.8%, YoY.

Outlook:

Since the gap between spot & future prices has narrowed, the Company expects the profitability of Edible Oils to come back to normal levels in terms of Gross Margin and EBITDA per ton. Food & FMCG and Industry Essentials are expected to continue their profitability momentum.