Sula Vineyards Faces Temporary Urban Demand Slowdown

Sula Vineyards Ltd CEO Rajeev Samant addresses a temporary slowdown in urban discretionary demand. The company's net revenue for the second fiscal quarter dipped by 1.2%, with a 37.3% decline in profits. Despite temporary disruptions, optimism for future tailwinds remains as new opportunities arise.

Sula Vineyards Ltd CEO Rajeev Samant expressed hopes that the present deceleration in urban discretionary spending is merely a temporary issue rather than a fundamental one.

During the fiscal year's second quarter, Sula's net revenue decreased by 1.2% to Rs 142 crore, contrasting with Rs 143.7 crore from the previous year. Profit after tax also fell by 37.3% to Rs 14.5 crore, down from Rs 23.1 crore in the same period of last year.

Samant informed analysts about a noticeable slowdown in consumer demand for discretionary items, notably alcoholic beverages, in urban India, which constitutes over 90% of Sula's clientele. This slowdown continues despite a previous post-Covid surge in domestic wine consumption. The CEO remains cautiously optimistic for the year's second half, looking at Andhra Pradesh's reopening and other favorable factors.

(With inputs from agencies.)