Shares of Sula Vineyards Ltd were trading in the red on 9 May after the company announced its quarterly earnings for January-March. The shares crashed 6%, making it the biggest single day drop of the company’s shares since August 2023.

India’s biggest winemaker reported a 4.2% year-on-year decline in its net profit at Rs 13.6 crore during the quarter from Rs 14.2 crore reported in the same quarter of the previous fiscal year. The profit of the company took a toll due to the rising cost of raw materials, including grapes, sugar, and yeast. 

However, the company’s revenue during the quarter stood at Rs 131.7 crore, marking a 10% YoY increase from the same quarter last year. 

The earnings before interest, tax, depreciation, and amortisation (EBITDA) margins contracted to 25.3% during the quarter from 26.4% recorded in Q4FY23. 

Rajeev Samant, CEO of Sula Vineyards, said that wine tourism is their top priority, and they are expanding fast. 

The board of directors have also recommended a final dividend of Rs 4.50 per share. 

At 12:26 pm, the shares of Sula Vineyards were trading 6.85% lower at Rs 504.80 on NSE.