Latest News | Profitability in Q2 Under Stress on Lower Edible Oil Prices, Says Adani Wilmar

Mumbai, Oct 5 (PTI) Adani Wilmar on Thursday said the company's profitability in the September quarter remained under stress due to lower edible oil prices.

Excessive imports by the industry in recent months has also contributed to the stress, the company said in a BSE filing.

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Profitability for the quarter remained under stress due to divergent trends in spot and future prices of edible oils, it said.

Meanwhile, the company said it witnessed strong volume growth during the second quarter of the current fiscal, even as sales value declined on a year-on-year basis following a sharp fall in global edible oil prices.

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The company delivered strong volume growth in double digits, on the back of large opportunity in packaged staple foods and strong execution, Adani Wilmar said.

Rural sales have been growing faster due to higher focus on increasing rural distribution network, the company stated.

The company further said its food and FMCG business saw around 25 per cent year-on-year revenue growth during the quarter on a standalone basis.

The segment revenue is around Rs 4,300 crore on the last twelve month basis and in the second quarter it contributed about 10 per cent to the company's standalone revenue, Adani Wilmar said in the quarterly update on business (Q2 FY24).

The company's shares on Thursday closed at Rs 349.90, down 0.77 per cent on the BSE.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)