Adani Wilmar Reports Rs 311 Crore Profit in September Quarter and Plans Strategic Acquisitions

Adani Wilmar Ltd, a company dealing in edible oils, announced a consolidated net profit of Rs 311.02 crore for the second quarter of this fiscal year. This increase is attributed to higher income. The firm is considering several acquisitions to expand its cooking oils, speciality chemicals, and FMCG sectors. Last year, the company reported a net loss of Rs 130.73 crore during the same period.

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The company's total income increased to Rs 14,565.30 crore in the July-September quarter, up from Rs 12,331.20 crore in the previous year. Adani Wilmar is a joint venture between Adani Group and Singapore's Wilmar. It markets edible oils and other food products under various brands, including Fortune. Angshu Mallick, MD and CEO of Adani Wilmar Ltd, mentioned that they are evaluating 3-4 acquisition opportunities across all sectors.

Acquisition Plans and Financial Performance

Mallick stated that they have Rs 250 crore from their initial public offering for these acquisitions and are prepared to invest more if needed. "We hope to close a few deals by March next year," he said. Additionally, promoters plan to reduce their stake by 13% before February next year to comply with the minimum public shareholding requirement of 25%.

The company experienced robust growth in both edible oils and food and FMCG segments this quarter. Edible oils revenue increased by 21% annually, while Food and FMCG revenue saw a 34% year-on-year rise. Mallick noted that stable edible oil prices have positively impacted their business, resulting in strong profits over the past four quarters.

Brand Growth and Market Position

In the first half of this fiscal year, Adani Wilmar achieved its highest-ever half-year operating EBITDA of Rs 1,232 crore and a profit after tax of Rs 624 crore. The company ranks as the second-largest player in wheat flour and third-largest in basmati rice businesses. Mallick highlighted that their flagship brand Fortune is gaining consumer trust due to quality and branding investments.

The brand's acceptance has been bolstered by increasing retail penetration and expansion into new towns, leading to significant growth in their branded portfolio. Other food products like pulses, besan, soya chunks, and poha have also shown strong double-digit growth. Collectively, these products have reached Rs 1,500 crores on an LTM basis.

The overall Food and FMCG business has surpassed Rs 5,800 crore on an LTM basis. Mallick emphasised their commitment to building a substantial packaged food business in India.