The company said, “Rising interest rates, slow uptick in rural demand, and delayed withdrawal of monsoon in major parts of India impacted business in the quarter gone by.”
FMCG firm Adani Wilmar’s share price tumbled over 3.6 percent on October 13 after the management said that overall revenue in the September quarter is expected to grow in low single digit and volumes in the first half of the fiscal will clock low double-digit growth.
At 10 am, the stock was quoting at Rs 683 on the National Stock Exchange. This year so far, it has been one of the best performing stocks surging over 150 percent.
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In an exchange filing, the company said, “Rising interest rates, slow uptick in rural demand, and delayed withdrawal of monsoon in major parts of India impacted business in the quarter gone by.”
Leveraging the pan-India distribution of edible oil business, food & FMCG basket for the company continued its growth trajectory, expanding over 40 percent. “Edible oil business witnessed higher volume growth in the masstige category rather than the premium category as a result of downtrading,” the filing added.
The company is hopeful of sequential improvement in demand trends. Consumption may see an uptick in the second half of the fiscal on the back of festivities and softening of prices across food categories, the management said.
Brokerage firm Ventura Securities has a buy rating on Adani Wilmar with a target price of Rs 949: “The food category is a large space that is significantly underpenetrated and has decadal growth opportunities ahead. Adani Wilmar is sacrificing immediate profitability to grow rapidly and gain market share.”
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