Adani Wilmar shares fall 5% amid reports of Adani Enterprises stake sale plan
Adani Wilmar share price fell almost 5 per cent while those of Adani Enterprises rose almost a per cent in early deals on BSE on Thursday amid reports that Gautam Adani-led Adani Enterprises is exploring selling its stake in Wilmar International Ltd.
As per a Bloomberg report, Adani Enterprises has been considering a potential sale of its 44 per cent stake in Adani Wilmar for a few months. Gautam Adani and his family may retain a minority stake in a personal capacity following a sale, Bloomberg reported citing people.
Read more: Gautam Adani’s Adani Enterprises considers selling stake in Wilmar International: Report
Last week, Adani Wilmar reported a loss in the first quarter, hurt by a steep decline in edible oil prices. Adani Wilmar reported a 12 per cent yearly decline in consolidated revenue during April-June 2023 quarter at ₹12,928 crore.
The company said the decline in revenue during the quarter was reflective of a steep decline in edible oil prices. The food and FMCG segment recorded a strong revenue growth of 28 per cent year-to-year to record close to ₹1,100 crores of the total.
On the operating front, the edible oil major’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter came in at ₹130 crore, reporting a sharp decline of 71 per cent, compared to ₹443 crore in the year-ago period. The EBITDA margin stood at 1 per cent, compared to 3 per cent in the same quarter last year.
On the other hand, Adani Group’s flagship company Adani Enterprises announced its Q1 net profit grew 44 per cent year-on-year to ₹674 crore for the quarter ending June 2023. However, the company’s revenue fell 38 per cent YoY. The company’s consolidated total income stood at ₹25,810 crore on account of the correction in coal prices.
Read more: Adani Enterprises Q1 results: Net profit grows 44% to ₹674 crore, revenue falls 38%
Shares of Adani Wilmar are down 43 per cent while those of Adani Enterprises have lost about 12 per cent in the last one year.
Shares of Adani Wilmar traded 3.17 per cent lower at ₹380.60 while those of Adani Enterprises were up 0.55 per cent at ₹2,488.70.
Adani Group-linked stocks lost nearly $147 billion in market value earlier this year after US short-seller Hindenburg Research raised questions about the group’s corporate governance.
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Updated: 09 Aug 2023, 10:00 AM IST
