AWL Agri Business (AWL) Q1 24/25 earnings summary

Executive summary

• Achieved double-digit growth in sales volume and revenue for Q1 FY25, with consolidated sales volume up 12% year-on-year and revenue up 11% to INR 14,169 crore.

• Highest-ever consolidated EBITDA at INR 619 crore, with standalone EBITDA at INR 609 crore, reflecting improved profitability, especially in the edible oil segment.

• Edible oils and Foods & FMCG segments delivered strong growth, with Foods & FMCG revenue up 40% year-on-year.

• Company included in FTSE4Good Index Series, highlighting ongoing ESG efforts.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved and published following a board meeting on July 29, 2024.

Financial highlights

• Consolidated Q1 FY25 revenue was INR 14,169 crore, up from INR 12,928.08 crore year-over-year; standalone revenue reached INR 14,169 crore.

• Consolidated EBITDA was INR 619 crore, up 54% year-on-year; consolidated net profit was INR 313.20 crore, compared to a loss of INR 78.92 crore in Q1 FY24.

• Food & FMCG revenue reached INR 1,533 crore, up 40% year-on-year; edible oil segment profit at INR 398 crore.

• Standalone net profit for the quarter was INR 323.55 crore, compared to a loss of INR 38.44 crore in Q1 FY24.

• Gross profit and EBITDA normalized for derivative impacts; margin improvement attributed to normalization after last year's hedge misalignment.

Outlook and guidance

• Management expects to sustain current run rate in coming quarters, assuming stable commodity prices and no major geopolitical disruptions.

• Food and FMCG basket targeted to reach 1.25 million tons this year; rice volumes expected to grow 30%-40% annually for the next three years.

• Focus on expanding distribution, increasing premium brand mix, and improving capacity utilization.

• Management concluded there are no consequences from the short seller report or pending regulatory proceedings affecting the company as of the reporting date.

• The company continues to invest IPO proceeds in line with revised objectives, with unutilized funds temporarily parked in bank deposits.