Adani Wilmar Ltd., the consumer business unit of the Adani Group reported a net loss of ₹131 crore during the September quarter. For the same period last year, the company had reported a net profit of ₹48.76 crore.
In its quarterly business update early last month, Adani Wilmar had highlighted that the profitability for the quarter remained under stress due to divergent trends in the spot and future prices of edible oils.
The net loss figure was higher due to an exceptional item of ₹53.51 crore during the quarter. The company made a payment of ₹53.51 crore to the West Bengal Tax authorities to settle a tax dispute. It opted for a settlement scheme, wherein the issue can be settled by making 50% payment of the disputed tax liability, thereby waiving off any interest and penalty thereon.
For the quarter, Adani Wilmar reported a 13% drop in revenue at ₹12,267 crore, compared to ₹14,150 crore it reported during the same period last year. The business update highlighted a double-digit volume growth and an increase in rural sales, but sales value fell compared to last year. Adani Wilmar attributed that due to a sharp fall in edible oil prices.
Operating profit or EBITDA fell 43% from last year to ₹144 crore, while margin narrowed by 60 basis points to 1.2% from 1.8% last year.
Adani Wilmar had also highlighted in its business updated that volumes in the edible oil segment in the second half of the current financial year are always better due to seasonality, particularly due to higher festive demand and out-of-home consumption.
Additionally, the company's board has also approved the constitution of an Environmental, Social and Governance (ESG) committee from November 1, 2023. The committee will be primarily responsible to oversee the implementation of the company's ESG framework, ensure sustainable operations and ensure that the framework remains effective.
Shares of Adani Wilmar are off the day's low, currently trading 2.2% lower at ₹319.25.
First Published: Nov 1, 2023 12:23 PM IST
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