 "Adani Wilmar")
India's Adani Wilmar reported an 18.4% fall in third-quarter profit on Wednesday, hurt by weak demand in its edible oil segment and lower product prices.
The fast-moving consumer goods (FMCG) maker's consolidated net profit for the quarter ended Dec. 31 fell to Rs 201 crore ($24 million) from Rs 246 crore a year earlier.
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Subdued demand from institutional clients in the edible oil segment and its lower pricing hurt third-quarter earnings, the Adani group-owned company had said in a quarterly update earlier in January.
The quarter began with healthy sales volume in the segment owing to the festive and wedding season, but sales slowed post Diwali.
Sales volume for the edible oil segment, which contributes 61% to the total mix, was flat, while sales value declined by 21% during the quarter.
This resulted in a 17% fall in consolidated revenue from operations to Rs 12828 Crore, including a 22.8% decline in revenue from the edible oil segment.
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Weakened sales value due to lower prices has been a bugbear for Adani Wilmar, which posted two straight quarters of losses before this quarter's turn to profit.
Revenue from its food and FMCG segment grew nearly 25% on the back of strong penetration of its wheat business in South India, leading to improved volume offtake and demand from retailers there.
The Fortune cooking oil maker's total expenses fell nearly 17%, including an around 14% dip in input costs, as lower pricing for edible oil was in line with cheaper raw material costs.
In December, the Adani group had said that it would make a decision regarding the divestment of its stake in Adani Wilmar in the next three months.
Rival Marico, which makes the Saffola brand of cooking oils, reported a better-than-expected third-quarter profit as declining raw material costs outweighed a drop in revenue.
Adani Wilmar shares rose more than 1% after the results but pared some of its gains to trade 0.2% higher.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
