Adani Wilmar Q4 Results: Net Profit Jumps 59% Driven By Strong Edible Oil & Food Sales; Revenue Dips 3%

Adani Wilmar, the joint venture between Adani Enterprises and Wilmar International, has announced a 59% surge in standalone net profit for the quarter ended March 31, 2024. The company, headed by Gautam Adani, recorded a net profit of Rs 156 crore compared to Rs 98 crore in the corresponding period last year.

Despite a slight dip in revenue from operations by 3%, down to Rs 12,703.64 crore from Rs 13,121.89 crore, Adani Wilmar demonstrated resilience with significant growth in its edible oil and Food & FMCG segments.

The edible oil segment witnessed a robust performance with revenue touching Rs 10,195 crore in Q4 and Rs 38,788 crore in FY24. Notably, the domestic branded sales volume soared by 13% year-on-year (YoY) in FY24, outpacing overall growth and resulting in market share gains. Similarly, the Food & FMCG segment registered a revenue of Rs 1,341 crore in Q4, with a 9% YoY volume growth. Despite export restrictions dampening rice exports by 4%, domestic revenue and volume surged by 39% in FY24.

The Industry Essentials segment faced challenges, with revenue reaching Rs 1,702 crore in Q4 and Rs 7,479 crore in FY24. However, the segment saw a 22% YoY volume decline in Q4, mainly attributed to a 45% decline in the oil meal business. Yet, oleo-chemicals and castor businesses managed to grow by 19% and 4% respectively.

Angshu Mallick, MD & CEO of Adani Wilmar, attributed the strong performance to increased retail penetration in edible oils and foods. He highlighted the improved profitability in the second half of the year, with reported PAT in the second half of FY24 of Rs 358 crore and Rs 404 crore on consolidated and standalone bases, respectively.

Despite facing challenges in Bangladesh operations previously, including forex issues and economic fundamentals, Adani Wilmar has overcome these obstacles. Operations in Bangladesh have returned to normalcy, with the brand "Rupchanda" maintaining its market leadership in the edible oil category.

The company's shares surged over 4% higher at Rs 357.45 apiece on April 30. The Indian stock market remained closed on May 1 due to Labour Day.