Sula Vineyards Q4 FY2024 Results: Net profit declines 4.85%; Declares Dividend of Rs 4.50 per share

Synopsis

The company reported a 4.85% decline in its Q4FY24 consolidated net profit to ₹13.55 crore from ₹14.24 crore a year ago. The board proposed a final dividend of ₹4.50 per share for the fiscal year ending March 31, 2024.

Quarter Result Performance

Sula Vineyards Ltd saw a slight decrease in its overall profit for the fourth quarter ending March 2024, with a 4.85% drop compared to the same period last year. Specifically, their consolidated net profit fell from ₹14.24 crore to ₹13.55 crore. However, their revenue from operations during this quarter increased from ₹120 crore to ₹131.7 crore. On the flip side, the company faced higher expenses in the fourth quarter, reaching ₹116.83 crore compared to ₹100.83 crore in the previous year's corresponding period.

In the fiscal year ending March 31, 2024, Sula Vineyards experienced its best performance to date. consolidated net profit rose to ₹93.31 crore from ₹84.05 crore in the previous fiscal year, marking an 11% increase. Consolidated revenue from operations reached ₹608.65 crore, up from ₹553.47 crore in the previous fiscal year.

Specifically for FY24, Sula Vineyards achieved its highest ever revenue of ₹616.4 crore showing a 10.7% increase from the previous year. EBITDA also reached a record high at ₹183.6 crore, demonstrating an 11.1% rise yoy. Profit after tax stood at ₹93.3 crore up by 11% compared to the previous year.

The board of directors has suggested paying a final dividend of ₹4.50 per share on the company's equity shares, which have a face value of ₹2 each, for the financial year that ended on March 31, 2024. This proposal is awaiting approval from the shareholders at the upcoming annual general meeting.

Sula Vineyards Management Commentary

Rajeev Samant CEO of Sula Vineyards, provided a comprehensive update on the company's recent performance and expansion strategies. He highlighted the success of Sula's premiumization efforts, which have propelled the Elite and Premium wine share to a record high of 75.1% in the fourth quarter up from 71.7% a year earlier. This growth accompanied by a 15.5% increase in premium wine sales in FY24, has boosted the company's EBITDA margin by over 110 basis points marking an all time high.

Samant noted the sustained growth of Sula's wine tourism revenues which have seen double digit growth for five consecutive quarters. To capitalize on this trend, Sula is actively expanding its wine tourism offerings. This includes the recent inauguration of Milestone Cellars by Sula, a standalone tasting room and wine bar located near Nashik airport. Furthermore, plans are underway for a new resort adjacent to York Winery scheduled to open in mid 2025 featuring convention facilities to cater to the burgeoning wine tourism market.

Sula recently completed the acquisition of ND Wines a move expected to further enhance its wine tourism potential. As part of this acquisition Sula plans to transform ND Wines' current 120 square foot bottle shop into a sprawling 3,600 square foot wine tourism destination. Strategically located less than 50 kilometers from the Gujarat border, this expansion aims to attract both domestic and international visitors.

Samant reiterated that these initiatives underscore Sula's commitment to maintaining its leadership position in India's wine tourism industry. As a specialist in producing, procuring and distributing premium wines and alcoholic beverages, Sula offers the most extensive variety of wines in the Indian market, comprising 34 labels categorized as Elite and Premium.