Adani Wilmar revenue rockets fuelled by boiling edible oil prices

Adani Wilmar revenue rockets fuelled by boiling edible oil prices
Adani Wilmar's Fortune brand of edible oils have a fifth of the market corneredAdani Wilmar
  • Adani Wilmar has capitalised on the prices of edible oils being on a boil due to the ongoing Russia-Ukraine war.
  • The company’s revenue surged by nearly half as it navigated a “challenging macro environment”.
  • Profits remained under pressure due to rising input costs and an increase of a third in finance costs.
Adani Wilmar’s revenue is on the boil, surging by nearly half as the company reported a 46% increase in its total revenue for the financial year 2021-22, its first results since the company’s debut on the stock exchanges earlier this year.

In its results for the March 2022 quarter and FY 2021-22, Adani Wilmar reported a major increase in its revenue, commensurate with the surge in its revenue in the edible oil segment.

ParticularsFY 2021-22FY 2020-21Change
Revenue₹54,386 crore₹37,195 crore46.20%
Net profit₹800 crore₹728 crore9.90%

It is worth noting that in terms of profit before tax, the company witnessed a growth of over 40%, with a net profit of ₹1,059 crore for the year.

The Adani Wilmar stock has soared by multiple times since the company’s initial public offering (IPO) in February this year, going from ₹230 to ₹878 earlier this month, before cooling off a bit.

Adani Wilmar revenue rockets fuelled by boiling edible oil prices
Adani Wilmar share price since IPOBSE / Business Insider India / Flourish


Edible oil contributes ₹4 out of every ₹5 to the company’s sales

Nothing shows how reliant Adani Wilmar is on edible oils than this – out of every ₹5 of revenue that the company generated in the last year, ₹4 was from its edible oils business. Overall, Adani Wilmar has a fifth of the edible oil industry captured in India, under its Fortune brand.

Adani Wilmar revenue rockets fuelled by boiling edible oil prices
Adani Wilmar segment revenue contributionAdani Wilmar / Business Insider India / Flourish

The company’s dependence on edible oils stands out even more when it comes to profits – while its overall profit before tax stood at ₹1,059 crore for the year, the edible oils segment contributed ₹1,289 crore.

There is a deficit of ₹230 crore, with the food and FMCG segment continuing to report losses, and the finance costs surging by a third.

Adani Wilmar looking at acquisitions to expand its business


Apart from expanding the number of Fortune Mart stores to 33 from 5 a year ago, Adani Wilmar says it is going to focus more on acquisitions to expand its business.

“Going forward, we will focus more on inorganic growth and strategic investments in the food space,” said Angshu Mallick, the managing director and chief executive officer of Adani Wilmar.

$AWL.NSE Adani Wilmar : - Everyone know it buy fortune Oil. Established 23 yrs ago (1999) After IPO listing from 230 levels to 870 levels it sky rocketed within no time As of current scenario expecting it to retrace till 640 levels as per fibbonacci levels Currently stock is trading around 750 levels My view is to stay invested for longer period.

— (@Swapnilkommawar) May 02, 2022


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