The share price of this leading wine producer dropped by 9 percent to a day’s low of ₹ 493.25 per share after the company’s Q4 net profit declined 4.9% to ₹13.55 crore.
At 2:50 p.m.,Sula Vineyards Ltd shares were trading at ₹495.95 per share, down 8.45 percent on the National Stock Exchange. The company has a market capitalization of ₹4,198 crore.
Sula Vineyards shares have gained 38 percent in the last six months and 95 percent in a year.
Sula Vineyards Ltd announced a consolidated net profit of ₹13.5 crores for the quarter ending March 2024 (Q4FY24), marking a 4.9% rise from ₹14.2 crores recorded in Q4FY23. Additionally, the company’s total revenue from operation for the same quarter surged by 9.7%, reaching ₹131.7 crores compared to ₹120 crores in the previous year’s corresponding quarter.
For the fiscal year 2023-24, the company reported a consolidated net profit of ₹93.3 Crores, up 11% from ₹84.1 crores in FY22-23. Similarly, the total revenue for the fiscal year grew by 11.1%, standing at ₹567.7 crores compared to ₹516.5 crores in the previous fiscal year. As per the company’s filing.
The company experienced a decline in its consolidated net profit, dropping to ₹ 13.55 crore from ₹ 42.98 crore in the previous quarter. Similarly, revenue from operations also decreased to ₹ 131.70 crore from ₹ 217.54 crore in the preceding quarter.
In FY24, the company generated 75.2% of its revenue from the Elite & Premium wine segment, while the Economy & Popular segment accounted for 24.8%. Additionally, the company’s EBITDA margin increased to 30.2% in FY24 from 29.1% in FY23.
In the fourth quarter, the company saw an increase in total expenses to ₹116.83 crore, up from ₹ 100.83 crore in the same period the previous year.
Sula Vineyards Ltd is a wine producer and seller. The company’s operations are divided into two categories: wine production and the import of wine and spirits.
Sula’s strategy relies heavily on premiumization. In terms of volume and value, premium products now account for 65-70% of the company’s portfolio, up from 50% previously. The company is the Market leader with close to 60 percent market share in the premium wine category.
In terms of the company’s sales, off-trade sales account for 70% of total sales, while on-trade sales account for less than 30%.
Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. The company has a winery capacity of 16.7 Mn liters, amongst the top 5 wineries in Asia
Written by Omkar Chitnis
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