Adani Wilmar Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Adani Wilmar Ltd (AWL) Q4 FY22 Earnings Concall

Management Update:

• AWL said that for FY22-23, the growth is expected to be little higher of 3% for the overall consumption growth of edible oil. Additionally, AWL also expects the per capita consumption going up.

Q&A Highlights:

• Abneesh Roy of Edelweiss asked about volume growth in FY23 and consumption pattern changing.  Angshu Mallick CEO said the company is seeing reduced consumption due to high prices. AWL is already seeing demand for mustard oil and expects to see high volume growth. In rice bran oil also, if there is any shift in consumer behavior AWL said it’s going to benefit from it.

• Latika Chopra with JP Morgan asked about the breakup of food business in terms of wheat flour, rice, soya chunks, besan, the volume growth for FY22.  Angshu Mallick CEO replied that on food business, for FY22, AWL has been able to showcase 30% plus growth on both rice and wheat flour. Volume growth in besan was sub 15% in FY22, but just added capacities for besan last year.  The four categories should add between 30-35% of the growth for FY23.

• Latika Chopra with JP Morgan asked about the roadmap for food profitability.  Angshu Mallick CEO said that the food basket currently is sitting at INR2,600 crores, which is good. It’s a EBITDA neutral business and is a focus area for AWL and the company will keep growing this basket.