Sula Vineyards Ltd Share Price – NSE /  BSE

Alcoholic Beverages, Small Cap

Net profit of Sula Vineyards declined 37.29% to Rs 14.48 crore in the quarter ended September 2024 as against Rs 23.09 crore during the previous quarter ended September 2023. Sales declined 0.99% to Rs 132.36 crore in the quarter ended September 2024 as against Rs 133.69 crore during the previous quarter ended September 2023.

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Revenue from operations (excluding excise duty) decreased marginally to Rs 132.36 crore in the second quarter of FY25 as compared to Rs 133.69 crore recorded in the corresponding quarter previous year.

Profit before tax stood at Rs 18.08 crore in September 2024 quarter, down 41.60% from Rs 30.96 crore posted in Q2 FY24.

The company’s EBITDA fell 23.8% to Rs 34.4 crore in Q2 FY25 as compared to Rs 45.1 crore recorded in Q2 FY24. EBITDA margin reduced to 24.2% in Q2 FY25 as against 31.4% reported in the quarter ended 30 September 2023.

The company's own brands sales increased marginally to Rs 127.2 crore in Q2 FY25 as compared to Rs 126.8 crore reported in Q2 FY24,

In the September quarter, wine tourism revenue rose by 1% to Rs 12.2 crore as compared to Rs 12.1 crore reported in the second quarter of FY24.

The Elite and Premium brands led a 7% YoY growth, driven by strong double-digit growth in its iconic brands – The Source, RASA, and Dindori.

On half year basis, the company’s consolidated net profit fell 20.85% to Rs 29.11 crore in H1 FY25 as compared to Rs 36.78 crore recorded in H1 FY24. However, revenue from operations increased 3.94% YoY to Rs 269.65 crore in H1 FY25.

Rajeev Samant, CEO of Sula said, “We are pleased to report our 10th consecutive quarter of growth in our Own Brands business. However, Q2 FY25 was a subdued quarter, due to slowdown in consumer discretionary demand, particularly in urban areas where 90% of our sales are concentrated, and temporary disruptions in key markets like Karnataka and Delhi.

It is encouraging to see wine culture flourishing beyond our core markets, with strong double-digit growth in states like Telangana, Himachal Pradesh, Madhya Pradesh, Uttarakhand, and West Bengal, affirming our commitment to building a truly pan-India brand.

Looking ahead, while mindful of near-term challenges, we remain optimistic for the festive season on the back of structural tailwinds including the reopening of Andhra Pradesh after a hiatus of five years, introduction of 4 new labels in the CSD market and the return of SulaFest at our Nashik vineyards. We are confident the long-term Indian wine story remains intact, and we see a long runway of growth ahead of us.”

Sula Vineyards is principally engaged in the business of manufacture, purchase and sale of premium wine and other alcoholic beverages.

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Sula Vineyards will hold a meeting of the Board of Directors of the Company on 12 November 2024

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The company’s Own Brands revenue for the second quarter was Rs 127.2 crore, up 0.3% YoY. Sula stated the Own Brands revenue was ‘its highest ever’, driven by the Elite & Premium portfolio which recorded high-single digit growth.

The share of Elite & Premium increased to 80% in Q2 FY25 as against 74% in Q2 FY24. Along with a number of other markets, Telangana - company’s third largest market were a bright spot recording strong double-digit growth in Q2 FY25.

Wine Tourism division of the company recorded revenues of Rs 12.2 crore in Q2 FY25, up 1.3% YoY. Spend per guest increased by 9% YoY and occupancy rates improved to 74% in Q2 FY25 from 66% in Q2 FY24, even amid lower footfalls.

Commenting on the business performance for Q2 FY25, Sula said that Growth in Q2 FY25 was subdued primarily due to a broader slowdown in discretionary spending at the macroeconomic level as well as challenges in key markets - policy ambiguity in Karnataka and significant issues with the Delhi Excise portal in the last 15 days of Q2 FY25.

The company is optimistic that these setbacks are temporary and will resolve in the coming months.

Entering into the all-important Q3, Sula is gearing up for the festive season and looks forward to hosting the much-awaited SulaFest at its Nashik vineyards,” the wine producer said in a statement.

Sula Vineyards is principally engaged in the business of manufacture, purchase and sale of premium wine and other alcoholic beverages.

The company had reported 6.94% increase in consolidated net profit to 14.63 crore in Q1 FY25 as compared to Rs 13.68 crore posted in Q1 FY24. Revenue from operations (excluding excise duty) grew 11.47% year on year (YoY) to Rs 120.93 crore in Q1 FY25.

The scrip rose 0.55% to currently trade at Rs 444.50 on the BSE.

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