Sula Vineyards Q1 Update: Revenue Declines 8%, Wine Tourism Continues To Rise

Sula Vineyards Ltd.'s revenue for the quarter ended June fell nearly 8% at Rs 118.3 crore as compared to Rs 128.4 crore in the year-ago period, as per the provisional data shared by the company on Friday through an exchange filing.

The winery's revenue from its "own brands" slipped by 10.8% to Rs 102.3 crore from Rs 114.6 crore in the corresponding period of the past fiscal. According to the company, the revenue growth was subdued due to the continued slowdown in urban consumption. It also added that the hike in excise duty by Maharashtra caused pre-loading of spirits by the trade aiming to capitalise pre-revision prices. This led to the temporary blocking of trade placement for wine.

The Nashik-based company's wine tourism segment garnered a revenue of Rs 13.7 crore, up 21.8% as against Rs 11.3 crore in the year-ago period, the release added. This according to Sula is the highest ever first quarter revenue. The surge in revenue was led by increase in footfalls with record occupancy and spends per guest in the first quarter.

Sula added that the Dindori Tasting Room and Bottle Shop at ND Wines have opened and will attract wine enthusiasts due to the proximity to the Gujarat border.

The business update was shared after market hours. The stock settled 0.58% lower at Rs 299.60 apiece on the NSE, compared to a 0.87% decline in the benchmark Nifty 50.

The shares have fallen 40.10% over the past 12 months and 28.11% year-to-date. The average of 12-month consensus price target of Rs 309.25 implies an upside of 3.2%.