Adani Wilmar on Thursday reported a 73 per cent decline in consolidated Profit After Tax (PAT) at Rs 49 crore during the quarter ending September 30, following a challenging environment.
The company's PAT stood at Rs 182 crore in the year-ago period, Adani Wilmar said in a statement.
Revenue of the company grew by a marginal 5 per cent during the quarter under review at Rs 14,209 crore compared to Rs 13,584 crore in the same period last year.
The company's edible oils segment during the second quarter saw multiple challenges in consumer demand with several macro headwinds in the form of high inflation, rising interest rates, delayed monsoon and tepid rural demand, said the company.
Edible oil volumes remained flat due to sluggish demand in the semi-urban and rural markets, however, sequentially Quarter-over-Quarter (QoQ), edible oil grew by 17 per cent in volume terms, suggesting an uptick in demand in the second quarter of FY23, it stated.
A significant contribution came from Food and FMCG as well as Industry Essentials segments, which grew robustly at 41 per cent and 22 per cent YoY, respectively, thereby driving larger diversification in the revenue base and strengthening the platform for multiple business growth drivers for the future.
"We have delivered a strong quarter with a volume growth of 9 per cent in the face of a challenging environment. The quarter saw multiple hurdles in the edible oils business. While the volume growth in edible oils was flattish on YoY, it has grown by 17 per cent sequentially on a QoQ basis," Adani Wilmar MD and CEO Angshu Mallick said.
The overall performance continues to show an uptrend due to the robust execution of our strategy to grow the Food and FMCG business by driving its penetration through the distribution strength of the edible oil business, he noted.
"During the quarter, the volume share of Food and FMCG has gone up to 16 per cent and we expect to take this to 30 per cent over the next few years. Going forward, we expect H2 FY23 to be better with a recovery in consumer demand in the edible oils business too," he added.