Sula Vineyards (SV) Stocks Plunge 5.5% Amidst Q4 Profit Decline: A Detailed Financial Analysis

• Sula Vineyards, India’s leading wine producer, saw a 5.60% drop in its share price, plunging to ₹511.60 per share in today’s trading session.
• The company reported a 4.85% decrease in its consolidated net profit for Q4FY24, which has been attributed to increased total expenses.
• Despite this, the company achieved its highest-ever revenue, EBITDA, and PAT for FY24, with CEO Rajeev Samant highlighting the success of their premiumization efforts.

Sula Vineyards experiences a significant drop in share price following a decrease in Q4FY24 net profit, despite achieving record revenue, EBITDA, and PAT for FY24.

Sula Vineyards’ Share Price Falls

Sula Vineyards’ shares fell by 5.60% in today’s trading session, with each share priced at ₹511.60. This decline has pushed the stock to trade near its lowest point in the past two months. Investors’ negative reaction to the company’s Q4FY24 performance is believed to be the cause of this decline.

Decrease in Q4FY24 Net Profit

The company reported a 4.85% decrease in its consolidated net profit for Q4FY24, amounting to ₹13.55 crore, compared to ₹14.24 crore in the same period last year. This decline in profit was attributed to a significant increase in total expenses, which rose to ₹116.83 crore in Q4 from ₹100.83 crore in the corresponding period the previous year, according to the company’s regulatory filing.

Record Revenue Despite Profit Decline

Despite the decrease in net profit, Sula Vineyards achieved its highest-ever revenue, EBITDA, and PAT for FY24. The company’s total revenue from operations during Q4 increased by 12.1% year-on-year to ₹135.6 crore. However, this was a significant decline compared to the ₹217.54 crore reported in the preceding quarter. Overall, for FY24, the company achieved a revenue of ₹616.4 crore (up 10.7% YoY), EBITDA of ₹183.6 crore (up 11.1% YoY), and PAT of ₹93.3 crore (up 11.0% YoY).

CEO’s Statement on Company Performance

Rajeev Samant, CEO of Sula Vineyards, stated that the company’s premiumization efforts have resulted in a record share of Elite and Premium wine sales. He also highlighted the company’s focus on wine tourism and the recent opening of Milestone Cellars by Sula, their first standalone tasting room and wine bar outside their own winery campuses.

Conclusion

Despite the decline in share price and Q4FY24 net profit, Sula Vineyards achieved record revenue, EBITDA, and PAT for FY24. The company’s focus on premiumization and wine tourism is expected to drive future growth.