Shares of Sula Vineyards Ltd surged 7% on Friday after the country's largest wine maker recorded a 15.5% rise in the profit to ₹39.28 crore for the third quarter driven by an increase in the market for premium wines and as visits to its vineyards and resorts reached pre-pandemic levels.
This was the company's first earnings report since its listing on the bourses. The revenue from operations increased by 14.5% on year to ₹209.17 crore driven by premiumisation.
As per the company's exchange filing, earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin hit a record for the 9-month periodof FY23 at 31.0% led by premiumisation and operational efficiencies.
“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 FY 23, particularly in our priority own brands and wine tourism businesses," said Rajeev Samant, CEO of Sula Vineyards in an exchange filing.
On the technical front, the stock in Friday's trade was near its 52-week high levels recorded on January 23. The stock price rose 17.1% and outperformed its sector in the past week.
The stock's weekly average delivery volume is 31.98%.