By Admin 
AWL Q1 Results: Wilmar Limited has performed brilliantly in the first quarter of the current financial year. In its result released on Tuesday, the company said that a revenue of Rs 17,059 crore was recorded in the April-June quarter, which is 21 percent more than the same quarter last year.
Edible oil business caught speed
The company achieved this growth mainly due to its adible oil business, which has up to 26 percent compared to last year. Revenue of this segment alone is Rs 13,415 crore, which is 78.6 percent of Total Revenue and this segment is also 61 percent in the company’s total sales.
Food and FMCG business also gains momentum
The revenue and FMCG business of Adani Group has reached Rs 1,414 crore with a rise of 4 percent. Although the contribution of this segment to Revenue is only 8 percent, but its contribution to the total sales was 16 percent. The company increased the prices of some products in this segment in this quarter, which led to support for growth. The company’s industry essential business has also increased to 12 percent, which also had a contribution of 12 percent in total revenue. In this segment, the company makes products like D-Oyal Cake and Castor Oil.
Company adopting this strategy
Wilmer Limited is using cash flow from its adible oil business to increase the scope of its food and FMCG business. This strategy is largely similar to ITC, which is using the profits from its cigarette business to further their FMCG business. From the food oil segment alone, the company gets a cash flow of Rs 1,200 to Rs 1,500 crore annually, which is promoting investment in many new categories.
Company enhancing retail coverage
To strengthen its access to the market, AWL has increased its retail coverage by 18 percent to 8.7 lakh outlets, including about 55,000 rural towns. This is ten times more than the financial year 2022. Despite the strong revenue, the company’s net profit decreased to Rs 238 crore, due to the increased cost of raw materials.
The cost of goods sold (COGS) has a jump of 25 percent, which is more than revenue growth. However, in the last three months, the prices of raw materials have declined by more than 10 percent and in the coming quarters, the company’s profit can be seen.
On Tuesday, AWL’s stock closed at Rs 263 per share, which is trading at 30 times the earnings of the last 12 months. This is its lowest valuation in the last three years.
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