Adani Wilmar Q3 profit dips to Rs 201 crore amid weak demand and low edible oil prices

ani Wilmar Q3: Fast-moving consumer goods (FMCG) major ani Wilmar posted an 18.4 per cent decline in third-quarter profit on Wednesday. dip was attributed to weak demand in its edible oil segment and a decrease in product prices. For quarter ending December 31, ani Wilmar's consolidated net profit fell to Rs 201 crore down from Rs 246 crore in same period a year earlier.

Subdued demand from institutional clients in edible oil segment, coupled with lower pricing, contributed to downturn in third-quarter earnings. While quarter started with healthy sales volume, particularly during festive and wedding season, sales slowed post-Diwali.

Sales volume for edible oil segment, constituting 61 per cent of total mix, remained flat, with a 21 per cent decline in sales value during quarter. This resulted in a 17 per cent fall in consolidated revenue from operations, amounting to 128.28 billion rupees. tably, revenue from edible oil segment saw a significant 22.8 per cent decline.

ani Wilmar faced weakened sales value due to lower prices, marking a reversal from two consecutive quarters of losses before this quarter's return to profit. However, company experienced a nearly 25 per cent growth in revenue from its food and FMCG segment, driven by strong penetration of its wheat business in South India. Improved volume offtake and demand from retailers in region contributed to this growth.

Total expenses for ani Wilmar fell nearly 17 per cent, with around a 14 per cent dip in input costs, aligning with lower pricing for edible oil and cheaper raw material costs.

In December, ani Group anunced that a decision regarding divestment of its stake in ani Wilmar would be me in next three months.

Rival Marico, kwn for Saffola brand of cooking oils, reported a better-than-expected third-quarter profit, leveraging declining raw material costs to offset a drop in revenue. ani Wilmar shares initially rose more than 1 per cent after results but later tred 0.2 per cent higher, reflecting dynamic nature of market sentiments.

(With Reuters inputs.)