Adani Wilmar Ltd. (ADAW.NS) said on Thursday that weaker demand from the bread and frying industries pulled down its total oil sales volume in the fourth quarter.
According to the firm, total sales value fell in the high single digits in the quarter ended March 31, dragged down by edible oil, which fell by the mid-teens.
Although branded edible oil sales volume increased by 4% due to reduced pricing, total oil sales volume decreased due to weaker demand from the bread and frying industries, the business stated in an exchange filing.
Throughout the quarter, the firm observed a smoother supply of imported edible oils with prices decreasing, resulting in increased customer demand, particularly among the rural population.
Inflation-hit customers in rural India, who had previously shifted to unbranded, cheaper choices during the epidemic, are planning to spend more now that the rate of price increases has slowed.
The volume of the food industry increased by more than 40% in the reporting quarter, with substantial growth in key categories such as wheat and rice, according to the corporation famed for its Fortune brand.
Adani Wilmar witnessed decreased competition intensity in the wheat market owing to high wheat prices, which caused local companies to restrict operations in order to minimise their risk of holding high-cost inventory.
In the December quarter, sales of the company’s cooking oil and packaged meals went up, which led to a 16% rise in quarterly earnings.