Sula shares jump after company records 10% growth in revenues

Shares of Sula Vineyards were trading over 2% higher on Tuesday after the company announced a 10% jump in its fourth quarter and fiscal year 2024 revenues.

Sula said in an exchange filing that the company’s Q4FY24 revenue jumped to ₹131.8 crore compared to ₹120 crore in the same period of previous fiscal. Its full year revenue increased to ₹608.6 crore compared to ₹553 crore in FY23.

The wine tourism segment witnessed a growth of 31% during the fourth quarter to ₹16.4 crore while recording a 22% annual growth at ₹54.7 crore. Own brands grew by 9% during the quarter to ₹113 crore and registered an annual growth of 11% at ₹534.2 crore.

Sula CEO Rajeev Samant said the company achieved its highest-ever annual footfall of over 4 lakh wine adventurers passing through its gates. “...we have some exciting expansion plans on the anvil, with our first ever tasting room outside our own premises set to open near Nasik airport later this month,” he said.

The company also announced the acquisition of ND Wines, a winery in Nasik district, with the transaction on track to close by the end of April 2024.

"Strategically located on the highway less than 50 km from the Gujarat border in Dindori, ND Wines presents a great opportunity for expanding our wine tourism footprint. We anticipate a seamless integration of ND’s operations into our own within Q1 itself. This is Sula’s second acquisition in three years and highlights that we are always on the lookout for good strategic M&A opportunities,” Samant said.

ND Wines had a turnover of ₹2.3 crore during FY23. Sula indicated in an exchange filing that the acquisition cost stands at about ₹14 crore subject to final adjustments.

Shares of Sula have gained over 14% since the beginning of the year and close to 58% in the last one year.