India's Sula Vineyards posts lower Q2 profit on tepid urban demand

Sula Vineyards

12/11/2024 12:58

Nov 12 (Reuters) - India's biggest winemaker Sula
Vineyards  SULA.NS , reported a 37% fall in second-quarter
profit on Tuesday, as a slowdown in discretionary spending,
especially in urban areas, dampened demand.
    Sula's consolidated net profit fell to 144.8 million rupees
($1.72 million) in the quarter ended Sept. 30, from 230.9
million rupees a year ago.
    "Q2 was a subdued quarter, due to a slowdown in consumer
discretionary demand, particularly in urban areas where 90% of
our sales are concentrated," Chief Executive Officer Rajeev
Samant said in a statement.
    The company also faced technical issues with accessing New
Delhi's Excise portal-used to place orders and update liquor
stock-towards the end of the quarter, hurting sales, it said. 
    Sula's own brands segment, which contributes about 90% of
the total revenue, saw a marginal 0.3% rise in revenue during
the quarter. Its smaller wine tourism segment saw a 0.8%
increase in revenue.
    Sula's total revenue fell 1.1% during the quarter, while
total expenses rose about 10%.
    The winemaker's earnings before interest, tax, depreciation,
and amortization margin contracted to 24.2% from 31.4% a year
ago.
    
($1 = 84.3560 Indian rupees)

 (Reporting by Ashna Teresa Britto; Editing by Abinaya
Vijayaraghavan)
 ((AshnaTeresa.Britto@thomsonreuters.com;))