Sula Vineyards (SULA) Q3 23/24 earnings summary

Executive summary

• Holds over 60% market share in premium wines, leading the Indian market.

• Achieved 33.7% EBITDA margin in Q3 FY24, up from 31.0% in Q3 FY23.

• Winery capacity stands at 16.7 million liters, among Asia's top 5.

• Sourced from 2,800+ acres of vineyards and received IWCA Gold Certificate for sustainability.

• Attracted 340,000+ vineyard visitors in FY23, emphasizing wine tourism.

Financial highlights

• Q3 FY24 revenue from operations: ₹217.5 Cr, up 4.0% YoY; 9M FY24: ₹477.0 Cr, up 10.0% YoY.

• Q3 FY24 EBITDA: ₹73.3 Cr, up 12.8% YoY; 9M FY24: ₹150.3 Cr, up 16.3% YoY.

• Q3 FY24 PAT: ₹43.0 Cr, up 9.4% YoY; 9M FY24: ₹79.8 Cr, up 14.3% YoY.

• Gross margin improved to 67.0% in Q3 FY24 (up 488 bps YoY) and 70.4% in 9M FY24 (up 265 bps YoY).

• EPS for Q3 FY24: ₹5.09, up 8.1% YoY; 9M FY24: ₹9.45, up 11.2% YoY.

Outlook and guidance

• Focus on expanding wine tourism and premiumization of product portfolio.

• Plans for strategic investments and acquisitions in the Indian wine industry.

• Emphasis on sustainability and climate change readiness as core strategy.