Shares of Adani Wilmar fell nearly 4% in trading on Thursday after the edible oil giant said its total revenue for the July-September quarter would grow at a low-single-digit annual rate due to lower edible oil prices.

Adani Wilmar said the prices of edible oils (namely palm oil, soybean oil and sunflower) fell sharply in the September quarter and are now more or less at pre-Covid levels.

“We have seen palm, and soybean oil prices fall sharply from highs of $1,750 and $1,850 in June to $850 and $1,100 a tonne by the end of September 2022,” to protect market share, the company said.

Adani Wilmar said that, coupled with currency depreciation, will affect margins for the quarter. Shares of Adani Wilmar fell 3.87% to a BSE low of Rs 681 after the business update.

In a post-listing filing to the bourse, Adani Wilmar said its food and FMCG basket continued a similar growth trajectory to previous quarters, recording more than 40% growth due to the pan-India distribution of the edible oil business.

The company said the edible oil business saw higher volume growth in the hot category rather than the premium category due to continued downside trading in the quarter.

“In the quarter and first half, Industry Essential also grew to 20%. The business remains positive on the growth trajectory of food and FMCG and Oleo,” shares in Adani Group said. Adani Wilmar sells its edible oils and other food products under the Fortune brand.

“Multiple macro challenges continued to impact business during the quarter due to domestic and global factors, ongoing geopolitical gridlock, rising interest rates, slow rural demand growth and monsoon evacuation delays in key parts of India,” it said.

However, Adani Wilmar added that it was witnessing some positive signs of recovery as commodity prices softened and food production estimates for the previous crop year rose. In the edible oil sector, the market impact of high inflation and sharp price drops was basically absorbed in the second quarter.