India's Sula Vineyards posts higher Q3 profit on strong premium wine demand

Sula Vineyards

13/02/2024 13:30

BENGALURU, Feb 13 (Reuters) - Sula Vineyards, India's
biggest wine manufacturer  SULA.NS , reported a more than 9%
rise in third-quarter profit on Tuesday, helped by increased
demand for its premium brands and wine tourism business.
    The Mumbai-headquartered company said its consolidated net
profit rose to 429.8 million rupees ($5.2 million) from 392.8
million rupees year ago.
    Its wine segment, which houses premium brands such as
Dindori and Rasa, reported a nearly 4% rise in revenue during
the quarter. This is Sula's biggest segment and accounts for 89%
of the topline.
    Its smaller wine tourism segment, logged an 16% rise in
revenue as more people visited the company's vineyards, located
in the cities of Nashik and Bengaluru, especially over the long
Christmas weekend.
    Total revenue rose 4% to 2.18 billion rupees, the company
said.
    Its margins on earning before interest, tax, depreciation
and amortization (EBITDA) expanded to 33.7% from 31% a year ago.
    Additionally, Sula declared an interim divided of 4 rupees
per share for the financial year 2024.
    Shares of Sula, which rose over 7% during the December
quarter, closed up nearly 5% ahead of the results.
    

($1 = 82.9898 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Sonia Cheema)
 ((AshnaTeresa.Britto@thomsonreuters.com;))