Sula Vineyards shares dropped 5% on Thursday, marking the largest single-day fall for the wine stock since August 2023. This decline followed the company’s earnings report for the quarter.
What Happened: India’s largest winemaker by revenue, Sula Vineyards, experienced a 4.2% decline in profit for the fourth quarter, as rising costs eclipsed the steady demand for its premium brands like Dindori and Rasa. The company’s net profit fell to ₹13.6 crore in the March quarter, down from ₹14.2 crore in the same period the previous year.
Revenue for Sula Vineyards rose nearly 10% to ₹131.7 crore in the fourth quarter, fueled by a 14% increase in wine sales. However, the cost of raw materials, including grapes, yeast, and sugar, climbed nearly 9% to ₹88.8 crore, impacting the company’s profits.
See also: Tata Stock Continues To Sink After Q4: Why Analyst Sees Another 30% Slide
The company’s EBITDA margin also saw a decrease, contracting from 26.4% last year to 25.3% in the March quarter.
Additionally, the company’s wine tourism segment saw significant growth, expanding over 31%. CEO Rajeev Samant emphasized the importance of wine tourism, noting that Sula Vineyards is rapidly expanding in this area.
Price Action: Sula Vineyards Ltd. shares were trading 5.25% lower at ₹513.50 on Thursday morning.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.