Adani Group’s FMCG and commodity arm Adani Wilmar Limited (AWL) posted a 65 per cent drop in standalone net profit for the quarter ended March 31, 2023, at ₹98 crore versus ₹277 crore recorded in the same quarter last year.

The standalone revenue from operations stood at ₹13,122 crore for the quarter, down by 8 per cent against ₹14,230 crore in the corresponding quarter last year.

The company attributed the drop in profits to the margin pressure in soyabean oil due to disparity in tariff rate quota (TRQ), and high-cost inventory after a decline in edible oil prices during the fourth quarter, leading to the mark-to-market impact.

Profits were also impacted at the EBITDA level due to inflation in cost of packaging, logistics, chemicals, and power and fuel, as also finance cost due to rising interest rates.

Total standalone expenses for the fiscal increased by six per cent to ₹54,694 crore, from ₹51,387 crore in the previous year.

For the financial year 2022-23, AWL standalone net profit stood at ₹607 crore, down 25 per cent from ₹808 crore in the previous year. The revenues grew by six per cent to ₹55,262 crore from ₹52,302 crore a year ago.

On a consolidated basis, AWL net profit for the fiscal dropped by 28 per cent to ₹582 crore, as against ₹804 crore in the previous year. Consolidated revenues stood at ₹58,185 crore against ₹54,155 crore in the previous year.

Angshu Mallick, MD and CEO, AWL, said, “Our margins during the quarter and full year got impacted by high-cost inventory in a falling edible oil price environment, inflation impact on our operational costs, and an increase in interest costs due to rate hikes.

“We have almost doubled our food and FMCG revenues in two years and recorded over ₹4,000 crore revenue in the segment. Both of our key products — wheat flour (including sooji, rawa and maida) and rice —have crossed ₹1,000 crore of revenues during the year. In edible oil, branded sales, with 75 per cent saliency, we have done significantly better with 8 per cent year-on-year volume growth in FY 2023. In the industry essentials segment, we made good progress with our forward integration plans in speciality chemicals.”

Founded in 1999, Adani Wilmar crossed 5 million tonnes of sales this year.

AWL shares ended at ₹397.65, down 4.30 per cent, on BSE Wednesday.