Adani Wilmar shares surge over 5%; here's why
Adani Wilmar, one of the largest edible oil and food processing capacities in India, rallied 5.2% to ₹369.70 apiece in today's trade. The positive momentum stemmed from reports that India will allow the import of edible oils at lower import tax rates until March 2025. "The lower import duty structure on crude palm oil, crude sunflower oil, and crude soy oil was originally set to expire in March 2024.
However, as per the order, refiners can now continue to import at lower duties until March 2025," The Economic Times reported. Also Read: Adani Group plans to infuse $1 billion in green energy unit amid maturing bonds Adani Wilmar is an equal joint venture between business conglomerate Adani Group and Singapore-based Wilmar International, wherein both hold 43.97% stake each. The company's shares are currently trading 58% lower from their all-time high of ₹878 per share.
The company reported a net loss of ₹130.73 crore for the second quarter of FY24 as compared to a net profit of ₹48.76 crore in the same quarter last fiscal. The company posted a net loss of ₹78.92 crore in the preceding June quarter. Also Read: Global funds bought over $6 billion worth Adani stocks in 2023: Report The revenue from operations in Q2 FY24 declined 13% to ₹12,267.15 crore from ₹14,150 crore, due to a steep correction in the prices of edible oils.
It recorded a volume growth of 11% YoY in Q2. H1FY24 volume growth stood at 18% YoY. On the operational front, earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped by 43% to ₹144 crore from ₹254 crore, while the EBITDA margin contracted to 1.2% from 1.8% YoY.
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