Sula Vineyards on Tuesday posted a 37.29% fall in its net profit for the second quarter of the financial year.

What Happened: The vintner’s net profit for the quarter ended September came in at ₹14.48 crore, compared with ₹23.09 crore earned in the same quarter a year ago.

Sula posted a quarterly revenue from operations of ₹141.21 crore, which was 1.13% lower than the ₹142.83 crore it raked in last year.

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Sula has previously said that topline growth in the second quarter was subdued primarily due to a broader slowdown in discretionary spending at the macroeconomic level as well as challenges in key markets. Policy ambiguity in Karnataka and significant issues with the Delhi Excise portal in the last 15 days of the quarter, it added.

However, the company expects demand to bounce back in the coming few months, with the festive season kicking in.

Price Action: Ahead of results, Sula’s share price ended 0.024% higher at ₹414.65 on Tuesday. The stock has lost over 15% so far this year.

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