(Reuters) – India’s Adani Wilmar reported a profit for the second quarter on Thursday, buoyed by higher demand for its edible oils and food segments.
The company reported a consolidated net profit of 3.11 billion rupees ($37 million) for the quarter ended Sept. 30, compared to a loss of 1.31 billion rupees an year ago.
Adani Wilmar is a joint venture between the Adani group and Singapore’s Wilmar International.
Its revenue from its core edible oils segment, which contributes 76% to total revenue, grew 21% during the quarter, driven by a rise in demand for soyabean, sunflower and mustard oils.
“The stability in edible oil prices augurs well for our business,” said CEO and Managing Director Angshu Mallick.
Revenue from the company’s foods unit, which includes soya chunks and basmati rice, grew 34% as it added more stores, it said in its quarterly update.
It reported an 18% rise in total revenue to 144.6 billion rupees.
A rise in import duty, however, pushed up Adani Wilmar’s total expenses, which rose 14% to 141.63 billion rupees.
Rival ‘Saffola’ oil-maker Marico, which is set to report results later this month, expects second-quarter revenue to grow in the high single-digit percentage range as price hikes kept domestic demand steady.
Shares of Adani Wilmar, which is down 5% so far this year, gained 6% after posting its results.
($1 = 84.0450 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Rashmi Aich)
