Adani Wilmar Reported Mixed Performance for Q4

Even though the session started lower, Indian benchmark indices were able to move higher and reach all-time highs on the bourses thanks to strong gains in the utilities, power and oil & gas sectors. Broader indices outperformed the main indices and the advance-decline ratio strongly remained in favour of advances. 

Mixed investor sentiments were observed in Adani Group stocks, while shares of Adani Wilmar remained in focus following the company’s quarterly operational updates. The company announced that the food and FMCG segment’s revenue grew by more than 30% year-on-year to exceed Rs 1,000 crore for the quarter on a standalone basis.  

It was also mentioned that the food and FMCG segment witnessed more than 20% volume growth and 30% revenue growth on a year-on-year basis for the eighth consecutive quarter. However, first-quarter sales plunged 15% due to a dramatic drop in edible oil prices caused by weaker consumer demand in developed countries and robust worldwide production of oilseeds. The company also stated that high-cost inventories in a falling-price environment had put pressure on its profit margins. The company has constantly focused on boosting domestic oils, including mustard oil and rice bran health oil. 

Adani Wilmar Ltd (AWL), a joint venture between the Adani Group and the Wilmar Group of Singapore, is one of the biggest FMCG (fast-moving consumer goods) businesses in India. With market-leading positions across its goods, the company’s product line is diverse and includes the majority of the fundamental ingredients for a kitchen, such as sugar, wheat flour, rice, pulses and edible oil. 

Despite having recovered from the bloodbath caused by the Hindenburg report, shares of Adani Wilmar are still down more than 32% year-to-date and trading near Rs 410 per share on the BSE, with a 52-week high of Rs 841.90. 

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