Sula Vineyard Q1 Results: Profit Up 7%, Revenue Meets Estimates

Sula Vineyard Ltd. on Wednesday reported a 7% year-on-year advance in net profit for the first quarter of this financial year.

The wine-maker recorded a net profit of Rs 14.63 crore for the quarter-ended June, as compared to Rs 13.68 crore in the same quarter of the previous fiscal, according to its stock exchange notification.

Revenue increased by 10.2% year-on-year for the three months ended June, reaching Rs 120.93 crore. Analysts had projected revenue of Rs 117 crore.

The jump was despite the significant headwinds like election that restricted movement of alcohol beverages and scorching heatwave. These events impacted trade offtake and end consumer demand in the first quarter, according to Rajeev Samant, chief executive officer, Sula Vineyards.

"A really encouraging trend for us is that wine drinking is picking up well beyond the metros, with states like Telangana, Madhya Pradesh, Uttar Pradesh, Haryana, among others performing strongly for us in Q1. One other positive is ‘The Source’ range, which has been a real standout in the Elite and Premium category, growing by 21% YoY in Q1," said Samant.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 12% year-on-year to Rs 33.96 crore. The Ebitda margin was flat at 28.1%. Analyst estimates for Ebitda and Ebitda margin tracked by Bloomberg were Rs 34 crore and 29%, respectively.

Shares of the company closed 0.94% higher at Rs 484.10 apiece, as compared to a 1.27% advance in the NSE Nifty 50. The stock has fallen 2.40% year-to-date and 0.23% over the past 12 months.