 "Sula Vineyards tumbles 7% to fresh 52-week low as Q2 net profit falls 37%")
Sula Vineyards share price: Winemaker Sula Vineyards share price slipped as much as 7.44 per cent to hit a fresh 52-week low of Rs 385.35 per share on Wednesday, November 13, 2024.
The fall in Sula Vineyards share price came on the back of weak results in the September quarter of financial year 2025 (Q2FY25).
The Nashik-based wine player’s profit plummeted 37.3 per cent year-on-year (Y-o-Y) to Rs 14.5 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 23.1 crore in the September quarter of financial year 2024 (Q2FY24).
The company’s revenue (less excise) fell 1.1 per cent Y-o-Y to Rs 133.1 crore in the September quarter of FY25, from Rs 134.6 crore in the September quarter of FY24.
At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda), fell 23.8 per cent annually to Rs 34.4 crore in Q2FY25, from Rs 45.1 crore in Q2FY24.
Consequently, Ebitda margin squeezed 770 basis points (bps) to 25.8 per cent in the September quarter of financial year 2025 (Q2FY25), from 33.5 per cent in the September quarter of financial year 2024 (Q2FY24).
More From This Section
On the flipside, the company’s Own Brands jumped 0.4 per cent annually to Rs 127.2 crore in Q2FY25. Sula Vineyards said Elite & Premium led the way with 7 per cent growth in Q2FY25. Moreover, the share of Elite & Premium was at an all-time high of 78.5 per cent in Q2FY25, as opposed to 73.5 per cent in Q2FY24.
“We are pleased to report our 10th consecutive quarter of growth in our Own Brands business. However, Q2FY25 was a subdued quarter, due to slowdown in consumer discretionary demand, particularly in urban areas where 90 per cent of our sales are concentrated, and temporary disruptions in key markets like Karnataka and Delhi,” said Rajeev Samant, CEO of Sula Vineyards.
Sula Vineyards Outlook
“Looking ahead, while mindful of near-term challenges, we remain optimistic for the festive season on the back of structural tailwinds including the reopening of Andhra Pradesh after a hiatus of five years, introduction of 4 new labels in the CSD market and the return of SulaFest at our Nashik vineyards. We are confident the long-term Indian wine story remains intact, and we see a long runway of growth ahead of us,” Smant added.
About Sula Vineyards
Sula Vineyards is renowned as the country's leading winery and a trailblazer in wine tourism. The company is widely known for introducing grape varieties such as Chenin Blanc, Sauvignon Blanc, Riesling, and Zinfandel to India. In addition to its flagship label, Sula distributes popular brands like RASA, Dindori, The Source, Satori, Madera, and Dia.
Beyond winemaking, Sula offers a rich tourism experience with guided vineyard tours, wine tastings, and dining at its Italian restaurant, Little Italy.
Dedicated to sustainability, Sula Vineyards prioritises eco-friendly practices, such as using restaurant food waste to generate biogas, minimising landfill contributions.
The market capitalisation of Sula Vineyards is Rs 3,305.09 crore, according to BSE. The 52-week high of Sula Vineyards is Rs 699.75 per share.
At 11:41 AM, Sula Vineyards shares were trading 5.94 per cent lower at Rs 391.60 per share. In comparison, BSE Sensex was trading 0.58 per cent lower at 78,217.92 levels.