Sula Vineyards FY24 revenue jumps but shares fall after drop in quarterly profit

The company’s net profit came in at ₹93.3 crore, 11% higher compared to ₹84 crore in the previous fiscal.

On a quarterly basis, the company’s net revenue increased 12.1% on YoY basis to ₹135.6 crore in Q4FY24 from ₹120.9 crore in Q4FY23.

However, shares of Sula Vineyard were trading at ₹512.75 in morning trade, 5.31% lower than the previous closing price, likely because of a 4.2% year-on-year fall in quarterly net profit, from ₹14.2 crore to ₹13.6 crore.

Sula Vineyard’s own brands witnessed single digit growth at 9.1% on YoY basis. The brand’s contributions to the net revenue increased from ₹103.5 crore in Q4FY23 to ₹112.9 crore Q4FY24. However, the company saw a significant increase in wine tourism as it grew to ₹16.4 crore in Q4FY24 as opposed to ₹12.5 crore in Q4FY23.

The company’s Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) increased 5% YoY from ₹31.7 crore in Q4FY23 to ₹33.3 crore in Q4FY24.

Rajeev Samant, CEO of Sula Vineyards, said the company’s efforts to bolster its Premium and Elite wine segments paid. “The company’s share in the Elite and Premium wine segment increased to 75.1% in Q4FY24 compared to 71.7% in Q4FY23,” he said.

He also added that wine tourism is the company’s number one priority and its new resort will be opening next to York Winery by mid-2025. Additionally, Sula Vineyards has completed the acquisition of ND Wines.

The company’s stock has risen 6.10% since the start of the year. The 52-week high of the share is at ₹699.