India`s Sula Vineyards posts higher Q3 profit on strong premium wine demand
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Sula Vineyards, India's biggest wine manufacturer, reported a more than 9% rise in third-quarter profit on Tuesday, helped by increased demand for its premium brands and wine tourism business.
The Mumbai-headquartered company said its consolidated net profit rose to 429.8 million rupees ($5.2 million) from 392.8 million rupees year ago.
Its wine segment, which houses premium brands such as Dindori and Rasa, reported a nearly 4% rise in revenue during the quarter. This is Sula's biggest segment and accounts for 89% of the topline.
Its smaller wine tourism segment, logged an 16% rise in revenue as more people visited the company's vineyards, located in the cities of Nashik and Bengaluru, especially over the long Christmas weekend.
Total revenue rose 4% to 2.18 billion rupees, the company said.
Its margins on earning before interest, tax, depreciation and amortization (EBITDA) expanded to 33.7% from 31% a year ago.
Additionally, Sula declared an interim divided of 4 rupees per share for the financial year 2024.
Shares of Sula, which rose over 7% during the December quarter, closed up nearly 5% ahead of the results.
($1 = 82.9898 Indian rupees)
