Adani Wilmar hits the roof after Q3 PAT rises 16% YoY to Rs 246 cr

Adani Wilmar (AWL) locked in an upper circuit of 5% at Rs 419.35 after the company's consolidated net profit rose 16.44% to Rs 246.16 crore in Q3 FY23 as against Rs 211.41 crore in Q3 FY22.

Revenue from operations was at Rs 15,438.05 crore in Q3 FY23, up 7.43% from Rs 14,370.92 crore recorded in the corresponding quarter previous year.

During the quarter, the company's revenue from Edible Oil was at Rs 12,581 crore (up 4% YoY), revenue from Food & FMCG stood at Rs 1,002 crore (up 45% YoY) and income from Industry Essentials was at Rs 1,837 crore (up 18% YoY).

EBITDA jumped 20% to Rs 605 crore in Q3 FY23 from Rs 504 crore posted in Q3 FY22.

Volumes improved by 16% to 1.47 million metric tonnes (MMT) in Q3 FY23 as compared with 1.27 MMT reported in Q3 FY22. Edible Oil volumes were at 0.96 MMT (up 9% YoY), Food & FMCG volumes were at 0.22 MMT (up 26% YoY) and Industry Essentials volumes were at 0.29 MMT (up 38% YoY) in the third quarter.

In continuation with the strong volume growth of the last 3+ years, AWL delivered 16% YoY volume growth in Q3. This was achieved on the back of the large opportunity available in the packaged food industry, well supported by its portfolio of premium and popular brands, pan-India distribution, and manufacturing facilities across the length and breadth of the country.

The quarter also saw macro tailwinds in the form of strong demand on the back of festivities and weddings, gradual recovery in rural markets and a bumper kharif crop. The company continues to stay focused on increasing the direct reach to retail outlets and expanding its manufacturing capacity, both organically and inorganically, the company stated in the press release.

In the edible oil segment, the company said that it continued to gain market share and witnessed satisfactory volume growth in the backdrop of weakness in demand for the baking and frying industry. Growth was enabled by a portfolio approach of having both premium and popular brands, as well as various types of edible oils, which usually see shift in consumer demand, basis their relative market price.

Food & FMCG segment contributes 15% by volume to the overall sales and delivered 27% volume growth in Q3 FY23. Both of company's top product categories - Wheat Flour and Rice have been growing well on the back of increased distribution reach and new product launches. The firm said that it will keep leveraging its extensive oil distribution network to increase the penetration of its Food & FMCG products.

Adani Wilmar said that it continued its leadership position in Castor Oil exports, increasing its market share to 32% (of castor oil exports from India) in Q3 FY23.

Angshu Mallick, MD & CEO, Adani Wilmar said: We have been witnessing a consistent demand for safe, hygienic, and nutritious packaged staple food. We are leveraging the distribution network, manufacturing facilities, logistics and customer relationships of edible oil business to grow rapidly in Food & FMCG business, which offers a much larger opportunity compared to our well-established edible oil business. We are also expanding our product portfolio with region specific products, ready-to-cook products, and category adjacencies.

He further added, The company is progressing well in the forward integration of its Industry essential business, resulting in the growth in sales of specialty chemicals, in addition to the growth in basic oleochemicals from capacity expansion.

In its future outlook, Adani Wilmar said, Going forward, the company believes that there is a huge opportunity in the Food & FMCG category, wherein the Company will play with its multiple strengths in a very focused manner. HoReCa (Hotels, Restaurants, and Catering) is another very large customer segment, which we can serve well with customized service, given the trust that our brands enjoy and large range of products offered by the company, with pan-India presence.

Adani Wilmar, a joint venture between Adani Group of India and Wilmar Group of Singapore, is one of the largest consumer Food FMCG companies in India. The company has a diversified product portfolio offering most of the primary kitchen essentials including edible oil, wheat flour, rice, pulses, besan and sugar with market leading positions across products.

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