Adani Wilmar reported a net profit of Rs. 175 crore.

Adani Wilmar Ltd (AWL), an edible oil major, on Wednesday reported a 10% growth in consolidated net profit at Rs 193.59 crore for the quarter ended June 2022. Its PAT stood at Rs 175.70 crore in June 2021. The total revenue increased to Rs 14,783.92 crore in the Q1 FY23 from Rs 11,369.41 crore in the Q1 FY22. The company has continued to demonstrate steady growth in overall volumes, led by the food business. It is despite multiple headwinds that were witnessed during the quarter, with inflation being the major concern. The edible oil business stood at 0.70 million tonnes, posting a growth of 6% volume YOY. In value terms, sales stood at Rs 11,519 crore, up 23 per cent.

Steady growth in new products:

While a majority of FMCG products are sold through general trade, the company has seen double-digit growth in revenue through e-commerce and modern trade. The sales of new products such as Poha, Khichdi, Total Balance Oil, Soya Chunkies, etc., have doubled on a YOY basis, though on a low base.

Adani Wilmar’s collective volumes increased to 1.19 million tonnes in Q1 of FY23 compared to 1.03 million tonnes in Q1 of FY22, registering a growth of 15 per cent. Food and FMCG continued to lead the growth and now have a basket of Rs 860 crore for the June quarter, registering a growth of 66 per cent on revenues and 53 per cent on volume terms. ‘Fortune’ the flagship brand, is India’s largest selling edible oil brand. The company has 23 plants in India, located in 10 states, comprising 10 crushing units and 19 refineries.

Valuations:

Adani Wilmar’s EPS is Rs. 6.68.The P/E ratio stood at 111. Its five-year P/E ratio was 74.7.The debt to equity ratio for the company was 0.36. The EBITDA ratio was 46.4. The ROCE for the stock stood at 21.5%. The ROE was at 15.5%. The large cap company closed at Rs.694, down by 0.54% on Thursday.