Indian company Adani Wilmar reported second-quarter profit on Thursday, driven by rising demand in its edible oils and food segments.
The company reported a consolidated net profit of 3.11 billion rupees ($37 million) for the quarter ended September 30, compared with a loss of 1.31 billion rupees a year ago.
Adani Wilmar is a joint venture between the Adani Group and Singapore-based Wilmar International.
Revenue from its core edible oils segment, which accounts for 76% of total revenue, grew 21% during the quarter, driven by higher demand for soybean, sunflower and mustard oils.
“Stability in edible oil prices augurs well for our business,” said Angshu Mallick, CEO and Managing Director.
Revenue at the company’s food unit, which includes soybean chunks and basmati rice, increased 34% thanks to new store openings, the company said in its quarterly update.
Total revenue increased by 18% to Rs 144.6 billion.
An increase in import duties, however, pushed up Adani Wilmar’s total expenses, which rose 14 per cent to Rs 141.63 billion.
“Saffola” oil maker Marico, due to report results later this month, expects second-quarter revenue to rise by a single-digit percentage as price increases helped maintain domestic demand at a stable level.
Adani Wilmar shares, which are down 5% since the start of the year, gained 6% after reporting results.
($1 = 84.0450 Indian rupees)
