Sula Vineyards Ltd's Q3FY25 Quarter Results
- 06 Feb 2025
Result Summary
- Sula Vineyards Ltd reported a 63.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 6.4%.
- Its expenses for the quarter were up by 56.8% QoQ and 22.3% YoY.
- The net profit increased 93.8% QoQ and decreased 34.7% YoY.
- The earnings per share (EPS) of Sula Vineyards Ltd stood at 3.3 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 217.54 | 133.12 | 204.44 | 63.4% | 6.4% |
Total Expenses | 180.33 | 115.04 | 147.39 | 56.8% | 22.3% |
Profit Before Tax | 37.21 | 18.08 | 57.05 | 105.8% | -34.8% |
Tax | 9.15 | 3.60 | 14.07 | 154.2% | -35.0% |
Profit After Tax | 28.06 | 14.48 | 42.98 | 93.8% | -34.7% |
Earnings Per Share | 3.30 | 1.70 | 5.10 | 94.1% | -35.3% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Sula Vineyards Ltd is a leading player in the Indian wine industry, recognized for its diverse range of wines and vineyard experiences. The company is renowned for its premium wines and is a pioneer in introducing the country to varietal wines, which have gained a strong foothold in the domestic market. Sula Vineyards has established itself as a significant contributor to the wine culture in India, with its products being available across multiple retail outlets and hospitality sectors. Recent developments include expansions in its wine tourism segment, which complements its core wine production business. This dual focus on production and consumer experience has positioned Sula Vineyards as a formidable entity in the beverage sector.
Revenue
In the third quarter of fiscal year 2025, Sula Vineyards Ltd reported a total income of ₹217.54 crores, marking a significant increase of 63.4% compared to the previous quarter (Q2FY25), which stood at ₹133.12 crores. When compared to the same period in the previous fiscal year (Q3FY24), the total income saw a modest year-over-year growth of 6.4%, from ₹204.44 crores. This increase in revenue reflects the company's potential to generate higher sales, possibly due to enhanced distribution or increased market demand for its products. The year-over-year growth, although positive, indicates a steadier pace, which could be indicative of market conditions or strategic pricing adjustments.
Profitability
For the quarter ending in Q3FY25, Sula Vineyards Ltd achieved a profit before tax of ₹37.21 crores, which represents a substantial quarter-over-quarter increase of 105.8% from ₹18.08 crores in Q2FY25. However, this figure is a decline of 34.8% when compared to ₹57.05 crores recorded in Q3FY24. The tax expense for Q3FY25 was ₹9.15 crores, soaring by 154.2% from Q2FY25's ₹3.60 crores, yet down by 35.0% from Q3FY24's ₹14.07 crores. Consequently, the profit after tax for Q3FY25 was ₹28.06 crores, showing a 93.8% increase over the previous quarter but a decrease of 34.7% year-over-year. Earnings per share for Q3FY25 were ₹3.30, up by 94.1% from Q2FY25 but down by 35.3% from Q3FY24's ₹5.10. These variations illustrate contrasting trends in profitability on both quarterly and annual bases, which may be influenced by changes in cost structures, pricing strategies, or external economic factors.
Operating Metrics
The operating expenses for Sula Vineyards Ltd in Q3FY25 amounted to ₹180.33 crores, indicating a 56.8% increase from the previous quarter's ₹115.04 crores, and a 22.3% increase from Q3FY24's ₹147.39 crores. This significant rise in expenses could suggest operational scaling or increased costs associated with production, distribution, or marketing. The relationship between rising expenses and revenue growth is critical in understanding the operational dynamics of the company. Despite the increased expenses, the substantial rise in total income has supported the company's ability to maintain profitability, albeit at reduced margins compared to the same quarter last year. These operating metrics provide a snapshot of the company's efficiency in managing its resource allocation and cost control mechanisms amidst fluctuating market conditions.
