AWL Agri Business (AWL) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 revenue was INR 14,460.45 crore, up 18% YoY; sales volume rose 12%.

• Q2 EBITDA was INR 613 crore and PAT INR 311.02 crore, versus a net loss of INR 130.73 crore in Q2 FY24.

• H1 FY25 EBITDA was INR 1,232 crore, the highest half-yearly level reported; financial statements list H1 EBITDA at INR 1,008.89 crore, versus INR -41.51 crore a year earlier.

• Edible Oil and Food & FMCG drove growth; Industry Essentials declined, while alternate channels and HoReCa posted double-digit growth.

Financial highlights

• Consolidated Q2 revenue was INR 14,460.45 crore; EBITDA was INR 613 crore, up 326% YoY, and PAT was INR 311.02 crore.

• Standalone Q2 revenue was INR 13,994.39 crore and net profit INR 325.73 crore; H1 PAT reached INR 649 crore versus a loss of INR 125 crore in H1 FY24.

• Standalone Q2 EBITDA including other income was INR 678 crore; trailing-12-month EBITDA exceeded INR 2,100 crore.

• Consolidated H1 net cash generated from operating activities was INR 1,697.87 crore; cash and cash equivalents were INR 724.98 crore at September 30, 2024.

• Q2 normalized gross profit was INR 1,818 crore; derivative instruments generated a net gain of INR 46.40 crore.

Outlook and guidance

• Food & FMCG turnover exceeded INR 5,800 crore on a trailing-12-month basis; targets are INR 6,000 crore-plus for FY25 and INR 10,000 crore by FY27.

• Edible-oil growth is expected to remain in double digits, though Q2 volume growth of 17% may not recur every period.

• Direct reach target remains 50,000 towns by March 2025; coverage was cited at 37,600 towns, with direct retail reach of 780,000 outlets.

• Bangladesh operations may improve over the next six months, but management was not optimistic for FY25 and expected conditions to improve from the next financial year.

• Management expects food inflation to normalize and wheat output to improve after a good monsoon, supporting FMCG food growth and some margin improvement.