Sula Vineyards Ltd. reported an expected 11% revenue growth in the second quarter, attributing it to the high demand for its premium wines and more visitors to its vineyards.
The company projects that its own brands, which make up about 91% of sales, will see a 14% year-on-year revenue increase, reaching ₹116.2 crore for the September quarter. This information comes from the quarterly business update shared with the exchanges on Wednesday evening.
Sula Vineyards Q2 Performance: Elite and premium wines drove the sales increase, showing an 18% growth this quarter, as highlighted by the company, which owns the Dindori and Rasa wine brands.
CEO Rajeev Samant commented on the success, saying, “Our emphasis on premium wines continues to yield results.” He noted that despite a general slowdown in discretionary spending, their elite and premium wine categories experienced double-digit growth.
The company also expects a 26% growth in wine tourism revenue, reaching ₹12.1 crore. Sula recorded a significant 43% increase in wine tastings this quarter, with over 49,000 participants. Samant added, “We set a new record on Oct. 1, welcoming 3,850 wine enthusiasts.”
Get all the latest Share Market trends and news to set you up for the week ahead.
In the recent quarter, Sula introduced its first Pinot Noir from The Source range, their rapidly growing premium wine brand. This wine is currently available in Maharashtra and will expand to other major markets by 2025. To accommodate the rising number of visitors, Sula expanded its renowned Nashik winery tasting room.
For the first half of the fiscal year, Sula anticipates a 15% revenue growth, with its own brands seeing a 22% increase. The company remains optimistic about the upcoming harvest, despite unpredictable monsoons, ensuring a steady supply of their elite and premium wines.
Price Action: Sula Vineyards Ltd. shares were trading 1.89% higher at ₹475.35 on Thursday shortly after markets opened for trading.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.