Sula Vineyards Shares Tumble 7%

13 Nov 2024 , 11:11 AM

Sula Vineyards‘ stock fell 7.4% to its day’s low of Rs 385.35 on the BSE today after the business announced a 1.2% YoY drop in revenue and a 27.3% YoY drop in Q2 profit after tax (PAT) on Tuesday.

Nonetheless, the company’s Elite & Premium portfolio did well during the quarter, growing 7% year over year. Its iconic brands, The Source, RASA, and Dindori, had double-digit growth.

The sales for the second quarter ended in September 2024 dropped to Rs 142 crore from Rs 143.7 crore in Q2FY24, while the net profit dropped to Rs 15.5 crore from Rs 23.1 crore in the same time last year.

Sula Vineyards also underwhelmed with its EBITDA, which dropped 23.8% year over year to Rs 34.4 crore, while the EBITDA margin decreased 718 basis points to 24.2%.

Additionally, the company reported that its H1 net sales of Rs 271.7 crore was its highest ever, up 3.7% year over year.

Higher spending per person (+9% YoY) and better occupancy (74% vs. 66% LY) were the main drivers of wine tourism growth in Q2.

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