India’s largest wine producer, Sula Vineyards, clocked double-digit sales growth and reached an all-time high in net revenues.
Sula Vineyards witnessed a significant uptick in its stock value, with shares soaring by 4 percent to reach Rs 485 each during early trading hours on Thursday. This surge was majorly attributed to the company's robust results for the second quarter of FY24.
India’s largest wine producer, Sula Vineyards, clocked double-digit sales growth and reached an all-time high in net revenues. As per the exchange filing on October 11, the company announced an estimated 14 percent year-on-year growth in revenue, reaching Rs 116.2 crore.
On the other hand, the company's wine tourism business saw an estimated revenue growth of Rs 12.1 crore, reflecting a substantial 26 percent year-on-year increase. In the first half of the fiscal year 2024 (H1FY24), the company recorded strong revenue growth, with its own brands witnessing a substantial 22 percent year-on-year surge to reach Rs 209.3 crores, while the revenue from its wine tourism business showed a 19 percent year-on-year increase, totaling Rs 23.3 crores.
Sula CEO Rajeev Samant stated, “We are pleased to announce yet another quarter of double-digit growth, both in our all-important own brands and wine tourism businesses. Our focus on premiumization continues to pay off, with our elite and premium wines leading the way, bucking the slowing trend in discretionary spending in the overall economy during Q2.”
At 03:00 pm, Sula Vineyard was trading at Rs 474, up by 7 points. On a year-to-date basis, the company’s share price has surged to almost 45 percent.
“Our world-renowned wine tourism business continues to shine brightly, growing at 26 percent in Q2, and I am especially happy to note a massive 43 percent jump in tastings to over 49,000 this quarter over Q2 FY23. The future looks even brighter as we achieved our highest ever footfall on October 1, 2023, with a record 3,8501 wine adventurers passing through our gates." He further added.
Since its listing on December 22, 2023, Sula Vineyards' shares have appreciated by an impressive 52.37 percent from their initial price of Rs 361. As a result, the company's market capitalization now stands at Rs 3,998.85 crore.