Adani Wilmar’s Q3FY23 consolidated net profit jumped 16% on-year to Rs 246 crore, missing Street estimates. Consolidated revenue for the quarter came in at Rs 15,438 crore, up 7.4% on-year. The Adani group company was expected to report a net profit of Rs 536.60 crore, while Q3 revenue was seen at Rs 14,598.57 crore by analysts. EBITDA for the Dec quarter came in at Rs 605 crore, up 20% from Rs 504 reported in the same quarter last year. Adani Wilmar recorded 16% volume growth and 7% revenue growth.

“In continuation with the strong volume growth of the last 3+ years, Adani Wilmar delivered 16% on-year volume growth in Q3. This was achieved on the back of the large opportunity available in the packaged food industry, well supported by our portfolio of premium and popular brands, pan-India distribution, and manufacturing facilities across the length and breadth of the country,” the company said in a statement. Earlier this year, the Adani group company said its sales would grow in high single digits in the third quarter, helped by strong demand during the festive season and stronger out-of-home consumption.

Healthy growth in Food & FMCG segment

The quarter saw macro tailwinds in the form of strong demand on the back of festivities and weddings, gradual recovery in rural markets, and a bumper kharif crop. According to the regulatory filing, Adani Wilmar’s Food & FMCG segment is now contributing 15% by volume to the overall sales and delivered 27% volume growth in Q3FY23. “The company will keep leveraging its extensive oil distribution network to increase the penetration of our Food & FMCG products. Overall Food & FMCG basket clocked Rs 2,900 crore of revenue in the first 9 months and will register around Rs 4,000 crore revenue for the full year FY23,” it said.

Adani Wilmar: Capital Expenditure, Debt position & Credit Rating

At the time of IPO, Adani Wilmar identified capital expenditure (capex) of Rs 2,220 crores, to be spent over next 3 years, primarily towards expansion of food capacities across multiple locations. “The funding for this capex is tied up with a mix of IPO proceeds of Rs 1,900 crores and the remaining shall be funded from internal accruals,” the company said.

Debt position & Credit Rating

▪ Long-term debt: Currently, the company has no outstanding long-term debt as on 31 December 2022.
▪ Credit rating: CARE Long term (AA-) & Short term (A1+) with stable outlook.

Adani Wilmar shares hit upper circuit on Wednesday to hit an intraday high of Rs 418 on NSE. The stock had taken a sharp beating after US-based short seller Hindenburg Research alleged that Adani group had engaged in stock manipulation and accounting fraud scheme over the last few decades. However, it has recovered in the last two sessions.