Reasons behind downside in the last 7 months :-
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Change in Government Policy by DGFT :- The margins for soybean oil were put under more strain because there was no Tariff Rate Quota (TRQ) for FY2023–34.
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Higher Inflation :- The increase in inflation resulted in higher costs for packaging, logistics, chemicals, power, and fuel, which had an impact on EBITDA.
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Interest Expenses :- Interest costs increased as a result of the rise in benchmark interest rates.
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Wholly Owned Subsidiary Losses :- Price limitations on edible oils, problems with the currency, and a lack of counterparties for FX hedging caused losses to Adani Wilmar’s Bangladeshi subsidiary of Rs. 12 crores in Q4 and Rs. 63 crores in FY23.
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Edible Oil Price Volatility :- Due to the company’s risk management procedures, the ongoing fall in the price of edible oil resulted in high-cost inventories and an MTM impact on P&L.
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Muted Demand :- Demand from institutional purchasers, the bread and frying industries, and the edible oil market decreased.
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Softening of Edible Oil Prices :- The reduction in edible oil prices had an effect on revenue, raising the cost of inventory and reducing margins.
