The share of India’s best-selling red wine and largest wine manufacturer, with a 50 percent share in the domestic wine market, gained by 6% on Monday’s trade. At 12:33 p.m., Sula Vineyards Ltd shares were trading at Rs 463.45, up 4.15 percent, This surge came in response to strong sales growth in its June quarter business.
According to the Exchange filing, the company announced a first-quarter FY24 sales update. The company’s first-quarter net revenue rose 17% year on year, led by 30% growth in Elite and Premium brands, the company’s own brands outperformed with segment revenue up 24% to Rs 103.5 crores, and the wine tourism business grew by 11% to Rs 11.4 crores.
The company’s share price has climbed from Rs 330.10 to its current level in the previous six months, representing a 40.81 percent return.
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.
The business is working on expanding wine tourism and recently opened the Bangalore Vinery. Sula plans to enhance its capacity for wine tourism from 14 million litres to 20 million litres during the next two years. The business plans to add 2.5 million litres by 2023.
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.
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%.
The company’s Revenue increased by 26 percent year on year, rising from Rs 389 crore in FY 21-22 to Rs 492 crore in FY 22-23. Net profit climbed by 83 percent within the same time period, from Rs 48 crore to Rs 88 crore.
As of FY 22-23, the firm’s promoters held a 27.33 percent stake, foreign institutional investors held a 5.86 percent stake, and domestic institutional investors had an 11.76 percent stake in the company.
Written by Omkar Chitnis
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