Wine maker Sula Vineyards on Thursday reported 15% increase in net profit at Rs 39 crore for the quarter ending December 31, 2022 as against Rs 34 crore in the year-ago period.
The company’s revenue rose 14% at Rs 209 crore as compared to Rs 183 crore in Q3FY22. On Thursday, the company’s scrip on BSE closed nearly 7% higher at Rs 403.
“Consistent with our efforts to focus on own brands, the revenue contribution from own brands has improved to 88.7% from 86.9% in Q3FY22. Within own brands, revenue contribution from Elite and Premium wines jumped to 74.5% vs 69.9% in Q3FY22,” said the company in a stock exchange filing to announces its maiden quarterly results after public listing in December 2022.
Rajeev Samant, CEO of Sula Vineyards Limited said: “Q3 was a record-breaking quarter for Sula – in all aspects, Revenue, EBITDA & profits. This is significant, because Q3 is historically the highest sales quarter and hence most important for the wine industry which is a highly seasonal business. We have delivered strong growth in Q3 as well as the first 9 months of FY23, particularly in our priority own brands & wine tourism businesses.
“EBITDA margin hit a record for the 9-month period at 31.0% led by premiumisation and operational efficiencies. Strong collections resulted in a sharp decrease in DSO to 106 days on December 31 from 119 days a year ago, with net debt coming down to Rs 173 crore compared to Rs 205 crore YoY. One great sign is that both metro and non-metro markets have shown strong consumption growth.”