Adani group stocks: Adani Wilmar, Adani Total Gas shares in focus on business updates

Shares of Adani Wilmar will be in focus on Monday morning after the Adani group company released operational updates for the March quarter. Adani Total Gas, another group company, will be on investor radar, following the Centre's decision to revise the domestic natural gas pricing guidelines. 

Adani Wilmar

Adani Wilmar said supplies of imported edible oils were smoother in March quarter compared with the earlier part of the year. Prices have cooled off from historically high levels and have been stable, stimulating higher consumer demand, particularly in the rural population strata, it said.

Mustard, which is a key domestic oilseed, is expected to harvest a record bumper crop in FY23 at close to 11 mt, 5 per cent higher than the previous year. In the foods segment, wheat prices have started soaring from July 2022 onwards, prompting the government to release wheat stock in the market to increase supply, which resulted in the normalization of wheat prices, Adani Wilmar noted.

Adani Wilmar said edible oil segment’s branded sales volume grew 4 per cent for the March quarter, on the back of good consumer demand due to softened edible oil prices. However, overall oil sales volume was dragged down due to lower demand from bakery and frying industry. The Food business, it said, is executing well on its long-term plan and scaling up its operations across India, registering a volume growth of 40 per cent YoY in Q4FY23, with good growth in key categories.  

For FY23, Adani Wilmar said it clocked close to 14 per cent volume growth in FY23, which enabled it to cross Rs 55,000 crore of revenue for the year. The Adani group company said it made good progress in scaling up its operations and gaining market share across food products.

"The food business is scaling up well in-line with our expectations. We have been making good progress in all enablers like sourcing, manufacturing, distribution, brand building and strengthening the teams for the new products. We closed the FY23 with around Rs 3,800 crore of revenue in Food & FMCG segment, registering a strong growth of about 40 per cent YoY in volumes and 55 per cent YoY in revenue terms, while seeding multiple new avenues of growth during the year," it said.

Adani Total Gas

Adani Total Gas, among others, has reduced CNG and PNG prices following the Centre's decision to revise the domestic natural gas pricing guidelines. Adani Total reduced CNG and PNG prices to up to Rs 8.13 per kg and Rs 5.06 per scm (standard cubic metre), respectively. It also announced a reduction in PNG prices for industrial and commercial consumers by Rs 3 per scm, ATGL said in a statement.

The prices were revised a day after the Union government announced a revised new pricing mechanism for the bulk of domestically-produced natural gas by state-run explorers. The new system of pricing, as per the government, will reduce the CNG and PNG costs.

In a statement, ATGL said it welcomed the Central government's decision to link the Administered Price Mechanism (APM) Price for gas supply to CNG vehicles and residential households to 10 per cent of the Indian crude basket with a floor of $4 and a ceiling of $6.5 per mmBtu.

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