Adani Wilmar's shares rise on steady volume, exports growth in Q1 estimates

In Q1FY25, Adani Wilmar recorded a volume growth of 13 per cent year-on-year (Y-o-Y), led by market-specific strategies in each category, and aimed at gaining market share

Shares of Adani Wilmar surged up to 4.38 per cent at Rs 347.90 per share on the BSE in Monday’s early morning deals. The stock price surged after the FMCG company on Friday reported its business update for the first quarter of the fiscal year 2024-25 (Q1FY25). 

In Q1FY25, the company recorded a volume growth of 13 per cent year-on-year (Y-o-Y), led by market-specific strategies in each category, and aimed at gaining market share. 

“The company is actively pursuing substantial opportunities by executing strong sales and distribution strategies in general trade. Moreover, our alternate channels (e-com, Quick Commerce, MT) maintained their momentum with a 19 per cent Y-o-Y volume growth in Q1. The volume of our branded exports increased by 36 per cent Y-o-Y in Q1,” the company said in its Q1 business update. 

Further, Adani Wilmar stated that the June quarter's growth was additionally supported by sales of non-basmati rice to government appointed agencies for exports. Even after normalising this aspect, the Food and FMCG business volume grew by 23 per cent Y-o-Y.

Moreover, the company’s revenue from branded products in the domestic market has consistently grown at a rate exceeding 30 per cent Y-o-Y for the past eleven quarters. The company anticipates that strong growth in food volume will persist, it said in an exchange filing. 

In the fourth quarter of fiscal year 2023-24, Adani Wilmar reported a 59 per cent jump in its standalone net profit at Rs 156 crore, compared to Rs 98 crore in the year-ago period. 

However, despite the rise in net profit, the company's revenue from operations declined by 3 per cent to Rs 12,703.64 crore from Rs 13,121.89 crore in the same quarter of the previous fiscal year.

Adani Wilmar, a joint venture between Adani Enterprises and Wilmar International, specialises in selling various edible oil variants such as mustard, sunflower, and soybean.

At 10:41 PM; the stock of the company was trading 2.19 per cent higher at Rs 340.20 per share on the BSE. In comparison the BSE Sensex fell marginally 0.02 per cent to 79,979 levels.

At present, the shares of the company are trading at a price to earnings multiple of 155.54 times with an earning per share of Rs 2.14, BSE data showed.