Sula Vineyards' stock price down by more than 8%

9 May 2024 , 01:52 PM

Sula Vineyards shares dropped by 6.67% to hit an intraday low of ₹505.55 per share due to weak Q4FY24 performance. At the time of writing, the stocks were trading at ₹494.15 which is a 8.82% dip than the previous close.

The winemaker’s net profit fell over 4% Y-o-Y to ₹13.6 Crore in Q4FY24 from ₹14.2 Crore in Q4FY23. However, revenue surged 8% to ₹131.7 Crore in Q4FY24 compared to ₹120 Crore in Q4FY23. Ebitda dropped by 4.2% Y-o-Y to ₹29.5 Crore in Q4FY24 from ₹30.8 Crore in Q4FY23, with the Ebitda margin shrinking by 310 basis points to 24.1%.

The board recommended a final dividend of ₹4.50 per share. Revenue from Sula Vineyards’ own brands increased by 9.1% Y-o-Y to ₹112.9 Crore, with elite and premium wine revenue rising by 14.3% to ₹84.9 Crore. Elite and premium wine volume grew by 18.3% in Q4FY24.

CEO Rajeev Samant stated that premiumization efforts led to an all-time high Elite and Premium wine share of 75.1% in Q4FY24. Wine tourism revenues saw double-digit growth for the fifth consecutive quarter.

The company prioritizes wine tourism and has opened Milestone Cellars by Sula, its first standalone Tasting Room/Wine Bar outside winery campuses. Future plans include opening a resort next to York Winery in mid-2025, completing the ND wines acquisition, and expanding the current bottle shop to a 3,600 sq ft wine tourism destination near the Gujarat border.

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