adani wilmar share price : Stock, Analysis & Review

adani wilmar share price

Welcome to Kyadekhe.com! Today, we dive into the world of Adani Wilmar’s Q2 earnings, their growth outlook, and the demand trends in the edible oil and food sector. Adani Wilmar, a major player in the industry, recently released their Q2 financial results. It’s time to dissect those numbers, understand what led to the performance in the second quarter, and explore the future prospects for the company.

Analyzing the Numbers

Adani Wilmar reported a net loss of 131 crore rupees for the second quarter, a significant drop from a profit of 48.8 crore rupees in the previous year. It’s important to note that this loss was primarily attributed to a one-time loss of around 53 crore rupees. To shed more light on the matter, Anu Malik, the CEO of Adani Wilmar, joined the discussion.

adani wilmar Reasons for the Loss

Mr. Malik explained that the loss was due to hedging losses, a situation where the international and Indian markets were not in tandem, resulting in losses. This discrepancy was quite unusual, as markets generally move in sync. Additionally, they had to pay a one-time loss of around 53 crores due to a 2014 Entry tax issue. While they contested it, opting for an amnesty scheme seemed prudent.

Bangladesh Operations

Adani Wilmar also faced challenges with their Bangladesh operations due to foreign exchange issues. They were unable to buy local currency, creating foreign exchange losses. However, Mr. Malik highlighted that these issues have since been resolved, and from October onwards, the company has witnessed substantial improvements.

Growth in Volume -adani wilmar

One of the most crucial factors for Adani Wilmar is volume growth, which Mr. Malik confirmed was on an upward trajectory. The company has witnessed growth in all three major segments: edible oil, food, and FMCG. Notably, the food and FMCG segments have expanded from 10-11% of the volume to around 18% in recent years.

Focus on Food and FMCG

Mr. Malik emphasized their commitment to growing their food and FMCG segments. With the increasing demand for branded food products in India, particularly among a younger, health-conscious, and educated population, Adani Wilmar is well-positioned to tap into this market.

Demand Trends

Demand trends in the second half of the year are looking positive for Adani Wilmar. H2 traditionally sees higher consumption due to the winter season, festivals, and the upcoming marriage season, which will drive the demand for various food products.

Rural Market Expansion

Adani Wilmar is also making inroads into the rural market, which accounts for 30% of their business. The company is witnessing growth in branded packed food in rural areas, with a focus on delivering the right products at the right time to cater to the increased demand during H2.

Brand Milestones

One of the highlights was the Kinu brand, which achieved a significant milestone of over 250 crore rupees in revenue. Adani Wilmar’s Fortune brand, with a range of products, continues to be a powerhouse for the company. They’ve also introduced new variants like the Kohinoor Biryani Laki and the Fortune Biryani kit to cater to a broader audience, especially the Indian diaspora.

Upcoming Launches

Adani Wilmar has more launches in the pipeline, including the Kolkata Biryani variant for the Kohinoor brand. They are continuously innovating to bring new products to the market and expand their product portfolio.

Southern Region Expansion

Adani Wilmar’s efforts to expand in the southern region are showing promise. The company has adopted an integrated strategy of offering edible oil and ATA products alongside rice in the market. This approach has yielded positive results, especially in cities like Chennai and Hyderabad.

Margin Trajectory

While the recent margin stood at 1.2%, lower than the previous year’s 1.8%, Mr. Malik is optimistic about the future. With the resolution of hedging losses and a more stable market environment, he expects the company’s performance to improve significantly in Q3 and beyond.

Conclusion

In conclusion, Adani Wilmar’s Q2 earnings may have presented some challenges, but the company is poised for growth. With a strong focus on expanding its food and FMCG segments, tapping into rural markets, introducing new products, and improving margins, the future looks promising for Adani Wilmar.

Stay tuned to Kyadekhe.com for more updates on the world of business and finance. Adani Wilmar’s journey is one to watch, and we will keep you informed every step of the way.

Note: ” Post is based on an actual interview and may be subject to changes or updates in the future.“

Disclaimer

The information provided in this article is for educational and informational purposes only and does not constitute financial advice. Always conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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