Sula Vineyards Q3 Results: Profit Plunges 35%, Misses Estimates
The margin narrowed to 26.5% versus 35.4% in the year-ago period.
Sula Vineyards Ltd.'s consolidated net profit dropped 35% in the third quarter of the current financial year, missing analysts' estimates.
The company reported a profit of Rs 28.1 crore in the quarter ended December as compared to Rs 43 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had a consensus estimate of Rs 40 crore.
Sula Vineyards Q3 FY25 Highlights (Consolidated, YoY)
Revenue down 0.4% to Rs 200.2 crore versus Rs 203 crore (Bloomberg estimate: Rs 206 crore).
Ebitda down 26% to Rs 53.1 crore versus Rs 71.9 crore (Estimate: Rs 68 crore).
Margin narrows to 26.5% versus 35.4% (Estimate: 33%).
Net profit down 35% to Rs 28.1 crore versus Rs 43 crore (Estimate: Rs 40 crore).
In the fourth quarter of fiscal 2025, Sula Vineyards plans to introduce a 3,500 sq ft Dindori tasting room and bottle shop at ND wines. It also plans to open a new tasting room, expand its bottle shop and restaurant capacity at Domaine Sula in the second half of fiscal 2026. A 30-key resort with convention facilities is set to open at York Winery in the second half of fiscal 2026.
The Nashik-based firm aims to install up to two megawatts of battery energy storage in the third quarter of fiscal 2026. This will help in saving excess energy, making it available for use during peak times.
"We are pleased to report our 11th successive quarter of growth in our own brands business," Chief Executive Officer Rajeev Samant said. "However, our pace of growth slowed in the third quarter, impacted by three major factors — a broad-based consumption slowdown in urban India, election-related disruptions in Maharashtra, and WIPS credit captured being lower by Rs 4.7 crore versus LY with the capping of WIPS at Rs 20 crore p.a. at our Domain Dindori facility."
Shares of Sula Vineyards closed 0.77% higher at 364.70 apiece on the National Stock Exchange, compared to a 0.18% fall in the benchmark Nifty. The stock has declined 42.78% in the last 12 months.
Out of the seven analysts tracking the company, four maintain a 'buy' rating on the stock, two recommend 'hold' and one suggests 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 29.6%.
