Adani Wilmar sows’ success: Q2FY24 sees double-digit volume growth on rural demand boost

Indian headline indices demonstrated resilience as the Monetary Policy Committee (MPC) conformed to market expectations, choosing to maintain the status quo for the fourth consecutive time by keeping the policy repo rate unchanged at 6.5%.

Notably, the real estate, consumer durables, and financial services sectors experienced substantial gains. In the broader indices, the majority of gainers were buoyed by optimism surrounding the release of their respective Q2FY24 business performance reports.

The company has reported robust double-digit volume growth, attributing this success to the significant opportunities within the packaged staple foods sector and effective execution. The Food and fast-moving Consumer Goods (FMCG) sector continued its rapid expansion, registering an impressive year-on-year segment revenue growth of approximately 25%.

The company has been successfully expanding its market presence across key product categories including wheat flour, rice, pulses, besan, sugar, soya chunks and poha. In the domestic market, revenue generated from branded products has consistently grown at a remarkable rate of over 40% year-on-year for the past 8 quarters, accounting for around 80% of the total segment revenue in Q2FY24.

In line with its commitment to enhancing its health-focused product offerings, the company introduced Brown rice under the renowned ‘Kohinoor’ brand. During Q2FY24, the edible oil segment experienced a 5% year-on-year volume growth, but notably witnessed a significant decline in segment value, primarily due to the sharp drop in global edible oil prices.

Adani Wilmar Ltd (AWL), a joint venture between India’s Adani Group and Singapore’s Wilmar Group, stands as one of India’s foremost consumer Food FMCG companies, holding a prominent position in the market. Over the past year, shares of the company have experienced a significant decline of more than 50% and are currently trading at Rs 350 per share on the BSE.

Keep a close eye on this stock for the upcoming trading sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.