Adani Wilmar Q2 Results

Adani Wilmar Q2 Results: Net Profit at ₹311 Crore, Revenue Up 18%

Adani Wilmar, a major player in the FMCG sector, announced strong financial performance for the second quarter (Q2) of FY2024-25. Here is a detailed breakdown of the results:

1. Overview of Q2 Results

• Net Profit: The company reported a consolidated net profit of ₹311 crore, a significant improvement from a net loss of ₹130.73 crore in the same period last year.
• Revenue Growth: Revenue from operations increased by 17.8% year-on-year (YoY) to ₹14,460.45 crore in Q2 FY25, up from ₹12,267.15 crore in the previous year.
• Total Income: The total income stood at ₹14,565.3 crore, marking an 18.1% YoY growth.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) skyrocketed by 293%, reaching ₹566 crore compared to ₹144 crore in Q2 FY24. The EBITDA margin also improved to 3.9%, up from 1.2% in the same period last year.

2. Segment-Wise Performance

• Edible Oil Segment: Revenue from the edible oil segment grew by 21% YoY to ₹10,977 crore, driven by stable oil prices that benefitted the business.
• Food and FMCG Segment: The food and FMCG division saw robust growth, with revenue surging by 34% YoY to ₹1,718 crore, reflecting strong consumer demand.
• Industry Essentials Segment: This segment, which includes Oleo, Castor meals, and oil meal businesses, saw a revenue decline of 9% YoY, with revenue at ₹1,766 crore due to lower sales in specific sub-segments.

3. Share Price Movement

Following the announcement of these results, Adani Wilmar’s stock price surged:

• On the NSE: Shares jumped by 6.6%, closing at ₹339.4 per share.
• On the BSE: The stock rose by 7%, reaching ₹341.3 per share.

4. Management Commentary

Angshu Mallick, the Managing Director and CEO of Adani Wilmar, expressed satisfaction with the company’s performance, highlighting double-digit growth across key segments like edible oils and food & FMCG. He also emphasized the positive impact of stable edible oil prices and noted that the company achieved its highest-ever half-year operating EBITDA of ₹1,232 crore and Profit After Tax (PAT) of ₹624 crore in the first half of FY25.

Advantages of Adani Wilmar’s Q2 Results

1. Significant Profit Growth: The company reversed its fortunes from a net loss last year to a substantial profit of ₹311 crore, showing a strong financial recovery.
2. Revenue Growth: A healthy 18.1% YoY increase in total income indicates strong operational performance and business expansion.
3. EBITDA Growth: The massive 293% rise in EBITDA demonstrates the company’s ability to manage costs and improve profitability, which is further boosted by stable edible oil prices.
4. Strong Performance in Core Segments: Both the edible oils and food & FMCG segments experienced double-digit growth, reflecting strong demand in key areas of the company’s business.
5. Shareholder Confidence: The 6-7% rise in the company’s share price following the results shows positive investor sentiment and confidence in the company’s growth potential.

Disadvantages of Adani Wilmar’s Q2 Results

1. Decline in Industry Essentials Segment: The 9% YoY decline in revenue for the Industry Essentials segment could be a concern, particularly in the Oleo, Castor meals, and oil meal businesses, which faced weaker demand.
2. Profitability Challenges in Lower Performing Segments: Although overall profitability improved, the decline in specific sub-segments suggests the need for better diversification or improved strategies in those areas.
3. Market Sensitivity: The company’s performance in the edible oils segment is closely tied to global commodity price movements, which could make future performance volatile if prices fluctuate.

Conclusion

Adani Wilmar’s Q2 FY25 results highlight the company’s strong financial recovery and significant growth across core business areas. The substantial increase in net profit and revenue, alongside the improvement in EBITDA, reflects solid operational management and favorable market conditions, especially in the edible oils and FMCG sectors. However, the decline in the Industry Essentials segment poses a challenge that the company needs to address in the coming quarters.

Overall, Adani Wilmar is well-positioned to continue its growth trajectory, but it must navigate industry-specific challenges and market dependencies to sustain profitability.

FAQs

1. What was Adani Wilmar’s net profit for Q2 FY25?

1. • The company posted a consolidated net profit of ₹311 crore in Q2 FY25, a sharp recovery from a net loss of ₹130.73 crore in the same period last year.

2. How much did Adani Wilmar’s revenue grow in Q2 FY25?

1. • The company’s revenue grew by 17.8% YoY to ₹14,460.45 crore in Q2 FY25.

3. What was the growth in EBITDA for Adani Wilmar in Q2 FY25?

1. • EBITDA rose by 293% to ₹566 crore, compared to ₹144 crore in Q2 FY24, with the EBITDA margin improving to 3.9%.

4. Which segments contributed to Adani Wilmar’s growth in Q2 FY25?

1. • The edible oil segment grew by 21% YoY, and the food & FMCG segment grew by 34% YoY. However, the Industry Essentials segment saw a decline of 9%.

5. How did Adani Wilmar’s share price react to the Q2 results?

1. • Following the results announcement, the stock surged by 6.6% on the NSE and 7% on the BSE.

Adani Wilmar Q2 Results

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