New Delhi: Adami Wilmar of Adani Group company Wednesday registered a net loss of Rs 130.73 crore in the second quarter of FY24, which was Rs 48.76 Crore in the same quarter last fiscal.
Net Loss Over 130 Cr, Revenue Declines 13%: Adani Wilmar Q2 Results Disappoint Firm
Note that the company had registered a net loss of Rs 78.92 crore in the quarter ended June 2023. Meanwhile, the net loss in the September quarter also included a one-time loss of Rs 53.5 crore.
In a press release Adani Wilmarm said, “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 are primarily driven by divergent trends in the spot (physical) and future prices, resulting in hedging losses.”
Revenue Declination
In the second quarter of the fiscal year 2024, there was a 13% decrease in revenue from operations, falling from Rs 14,150.03 crore to Rs 12,267.15 crore compared to the previous year. This decline was primarily caused by a significant drop in the prices of edible oils. However, there was a notable 11% increase in volume compared to the same period last year. When looking at the overall growth for the first half of fiscal year 2024, the volume grew by 18% year-on-year.
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“The robust growth was supported by gradual improvement in consumer demand, lower edible oil prices, execution in GTM and efficient supply chain. The branded sales in both edible oil and foods grew faster than the overall sales,” said the company.
During the quarter that ended on September 2023, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) decreased 43 per cent. It was fied at Rs 144 crore from Rs 254 crore. Ir should be noted that EBITDA margin contracted to 1.2% from 1.8%, YoY.
Angshu Mallick, MD & CEO, Adani Wilmar informed that the company has continued the growth momentum across all the business categories despite the challenging environment in the edible oils segment.
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He believes that the abnormality will soon be reversed with the profitability in edible oils impacting consecutively for the second quarter.