(Reuters) – India’s Adani Wilmar reported a two-fold surge in third-quarter profit on Monday, buoyed by higher demand in its core edible oils segment.
The consumer goods company, which makes the Fortune brand of cooking oil, reported a consolidated net profit of 4.11 billion rupees ($47.56 million) for the quarter ended Dec. 31 from 2.01 billion rupees a year ago.
Shares rose 3% after the results.
Revenue from its core edible oils segment – which accounted for over 79% of total revenue – grew 38% during the quarter, driven by increased demand for sunflower and mustard oils.
The company said it recorded in 5% growth in volumes in the quarter.
Cooking oil has largely resisted the broader slowdown in branded consumer goods due to its essential nature, despite brands increasing prices in recent months to offset rising ingredient costs, as per analysts.
Expenses rose 30% due to a sharp rise in underlying commodity prices, driven by a hike in customs duty in mid-September.
Adani Wilmar’s foods unit, which includes products such as soya chunks and basmati rice, recorded a 22% revenue growth, driven by increased demand from general trade and e-commerce channels, according to its quarterly update.
It reported a 31% increase in total revenue, hitting 168.59 billion rupees.
In late December, the Adani Group announced its exit from the consumer goods unit – which it owned in a joint venture with Singapore’s Wilmar International – selling its entire stake to its Singaporean partner and through the open market.
Rival Marico said in its update it anticipated third-quarter revenue growth in the mid-teen percentage range, supported by improving rural consumption and stronger demand for its Parachute and Saffola oil brands.
($1 = 86.4250 Indian rupees)
(Reporting by Ashna Teresa Britto; Editing by Janane Venkatraman)
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