(PTI) Edible oil major Adani Wilmar on Wednesday said the company's overall revenue in the July-September quarter will annually grow by low single-digit amid a fall in rates of edible oils.
Adani Wilmar markets its edible oils and other food items under the Fortune brand.
In a regulatory filing, the company shared a preliminary update on the standalone performance during the quarter ended September.
"Multiple macro challenges continued to impact the business in the quarter gone by owing to domestic and global cues, continued geo-political standoff, rising interest rates, slow uptick in the rural demand and delayed withdrawal of monsoon in major parts of India," it said.
Adani Wilmar said the company is witnessing some positive signs of recovery, with softening of commodity prices and higher foodgrain production estimates for the last crop year.
In edible oil segment, the second quarter essentially absorbed the market shocks of high inflation followed by sharp decline in prices.
In view of these developments, Adani Wilmar said the "overall revenue is expected to grow at low single digit during the quarter (year-on-year), whereas H1 revenues and volumes are expected to register a low double-digit growth."
The prices of edible oils, namely – palm oil, soyabean oil and sunflower sharply declined in the quarter and now trending more or less at pre-Covid levels.
"We saw the prices of palm oil and soyabean oil drop sharply from the highs of USD 1,750 and USD 1,850 in June to USD 850 and USD 1,100 a tonne by the end of September 2022," the company said.
Adani Wilmar passed on the benefit of lower prices to customers in a bid to protect market share. "This coupled with currency depreciation will have impact on margins for this quarter," it said.
Food and FMCG basket continued its growth trajectory, registering over 40 per cent growth. Edible oil business witnessed higher volume growth in the mass category. Industry essential business grew close to 20 per cent during the second quarter and in the first half of this fiscal.
Adani Wilmar has 23 plants across 10 states.