 "Sula Vineyards")
Shares of Sula Vineyards jumped 4 per cent to Rs 510 per share in Friday's intra-day trade as wine tourism clocked highest-ever revenue, visitors, and tastings over the extended weekend of August 12-14.
So far this calendar year, the stock of this wine producer has surged 54 per cent, as against a 7 per cent rise in the S&P BSE Sensex. Earlier, shares of Sula Vineyards hit a 52-week high of Rs 534 per share on August 1, 2023.
Over the three days, the company's revenue saw a 40 per cent growth to Rs 2.08 crore, as against the previous three-day record of Rs 1.47 crore.
A record 11,670 visitors enjoyed a day at Sula over the three days, from the previous record of 8,532 visitors in the year-ago period. August 14 witnessed the highest ever single day footfall with 3,711 visitors, wiping the previous record of 3,471 set on the same date in 2022.
Moreover, tastings, a major focus of Sula’s wine tourism, also set a record with over 4,700 individual tastings over the three-day period from 3,600 tastings in the year-ago period.
"Sula’s wine tourism visitors, revenues and tastings are second to no other in the world today. I look back at when we opened the first winery tasting room in India in 2005, when we were happy to welcome even 10 visitors a day, and I marvel at just how far we have come," said Rajeev Samant, Chief Executive Officer (CEO), Sula Vineyards.
In the June-ended quarter of fiscal year 2023-24 (Q1FY24), the company clocked 21.6 per cent year-on-year (YoY) rise in revenue to Rs 118.1 crore, led by sales of in-house brands and wine tourism.
Earnings before interest, tax, depreciation, and amortisation (Ebitda), too, jumped 22.2 per cent YoY to Rs 40 crore in Q1FY24, while Ebitda margins expanded by 27 bps YoY to 27.4 per cent.
That said, the management highlighted in their earnings call that they see no further upward movement in margins from this point as they have reached a peak.
"We expect to see greater volume growth out there and more penetration into secondary markets rather than trying to now get more Ebitda," added Samat of Sula Vineyards.
