Adani Wilmar stock hits 5% lower circuit post Q4 earnings
Stock of Adani Wilmar slipped 5 per cent to Rs 716 against the previous close of Rs 753.65 on BSE. Market cap of the firm fell to Rs 93,056 crore.
- May 4, 2022,
- Updated May 4, 2022 12:54 PM IST
Shares of Adani Wilmar hit lower circuit of 5 per cent today after the Adani Group firm reported a 25.6 per cent year-on-year decline in its consolidated net profit for the quarter ended March 2022. Stock of Adani Wilmar slipped 5 per cent to Rs 716 against the previous close of Rs 753.65 on BSE.
Market cap of the firm fell to Rs 93,056 crore. Total 14.81 lakh shares of the firm changed hands amounting to a turnover of Rs 109.07 crore.
The stock has now slipped 18.37 per cent from its all-time high of Rs 878.35 hit on April 28 this year.
In a month, the stock has gained 29.57 per cent. The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. The stock has been falling for the last three sessions.
The firm reported a profit of Rs 234.3 crore for the quarter ended 31 March, 2022 against a net profit of Rs 315 crore in the year-ago period.
However, the company clocked a 40 per cent YoY rise in its consolidated revenue from operations to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the same quarter last fiscal.
The Russia-Ukraine war has hit sunflower oil consumption which has fallen 50 per cent as Ukraine is the largest supplier of sunflower to the world, said Adani Wilmar in its earnings update. The stock of the edible oil major seems to have taken a beating after the company's statement.
ALSO READ: Adani Wilmar beats HUL to become the largest FMCG company in India
AR Ramachandran, Co-founder & Trainer, Tips2Trades said, "Despite decent Q4FY22 earnings, Adani Wilmar stock has been falling since the past two sessions as all possible positives had already been factored in the uptrend since the past three months. Technically, the stock looks weak and should test Rs 610- Rs 625 in the coming days with strong resistance at Rs 750."
Prashant Tapse, vice-president (research), Mehta Equities said, "Today's fall in Adani Wilmar is on the back of profit-booking attempt post quarterly results which was in line with market expectations."
Adani Wilmar said that the fast-moving consumer goods portfolio witnessed a slowdown due to high product prices. "While the rural market is the growth driver, inflation has impacted demand," the company said.
EBITDA or earnings before interest, taxes, depreciation, and amortisation came at Rs 488 crore, up 29 per cent YoY. The food & FMCG portfolio stood at 0.64 MMT in 2022 compared to 0.47 MMT in 2021, registering a growth of 34 per cent.
ALSO READ: Adani Wilmar acquires Basmati rice brand Kohinoor
Adani Wilmar's tax expense in Q4 stood at Rs 79.1 crore as against a tax write-back of Rs 93.3 crore in the year-ago quarter. However, adjusting for the one-time write back of tax in the year-ago quarter on account of switching to the new corporate tax regime, the company's net profit in the reported quarter climbed 39 percent on-year, Adani Wilmar said in a post-earnings note.
Shares of Adani Wilmar hit lower circuit of 5 per cent today after the Adani Group firm reported a 25.6 per cent year-on-year decline in its consolidated net profit for the quarter ended March 2022. Stock of Adani Wilmar slipped 5 per cent to Rs 716 against the previous close of Rs 753.65 on BSE.
Market cap of the firm fell to Rs 93,056 crore. Total 14.81 lakh shares of the firm changed hands amounting to a turnover of Rs 109.07 crore.
The stock has now slipped 18.37 per cent from its all-time high of Rs 878.35 hit on April 28 this year.
In a month, the stock has gained 29.57 per cent. The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. The stock has been falling for the last three sessions.
The firm reported a profit of Rs 234.3 crore for the quarter ended 31 March, 2022 against a net profit of Rs 315 crore in the year-ago period.
However, the company clocked a 40 per cent YoY rise in its consolidated revenue from operations to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the same quarter last fiscal.
The Russia-Ukraine war has hit sunflower oil consumption which has fallen 50 per cent as Ukraine is the largest supplier of sunflower to the world, said Adani Wilmar in its earnings update. The stock of the edible oil major seems to have taken a beating after the company's statement.
ALSO READ: Adani Wilmar beats HUL to become the largest FMCG company in India
AR Ramachandran, Co-founder & Trainer, Tips2Trades said, "Despite decent Q4FY22 earnings, Adani Wilmar stock has been falling since the past two sessions as all possible positives had already been factored in the uptrend since the past three months. Technically, the stock looks weak and should test Rs 610- Rs 625 in the coming days with strong resistance at Rs 750."
Prashant Tapse, vice-president (research), Mehta Equities said, "Today's fall in Adani Wilmar is on the back of profit-booking attempt post quarterly results which was in line with market expectations."
Adani Wilmar said that the fast-moving consumer goods portfolio witnessed a slowdown due to high product prices. "While the rural market is the growth driver, inflation has impacted demand," the company said.
EBITDA or earnings before interest, taxes, depreciation, and amortisation came at Rs 488 crore, up 29 per cent YoY. The food & FMCG portfolio stood at 0.64 MMT in 2022 compared to 0.47 MMT in 2021, registering a growth of 34 per cent.
ALSO READ: Adani Wilmar acquires Basmati rice brand Kohinoor
Adani Wilmar's tax expense in Q4 stood at Rs 79.1 crore as against a tax write-back of Rs 93.3 crore in the year-ago quarter. However, adjusting for the one-time write back of tax in the year-ago quarter on account of switching to the new corporate tax regime, the company's net profit in the reported quarter climbed 39 percent on-year, Adani Wilmar said in a post-earnings note.