Any current/future new fundraising through debt or equity?

The company is very comfortable on the financing side as highlighted by CFO Abhishek Kapoor. They have increased annual capital expenditure from Rs 55 crores to Rs 65 crores, funded comfortably. Borrowing costs rose only by 60 basis points despite benchmark rates increasing by 110 basis points. Credit rating upgraded by CRISIL from ‘A positive’ to ‘A plus stable’, aiding better borrowing terms. There was no explicit mention of any new fundraising through debt or equity in the call. The focus seems to be on sustainable growth funded by existing financial resources and improved borrowing costs.

Any current/future capex/capital investment/strategic investment?

Small capacity expansion at DD unit in Maharashtra by 3.5 lakh liters (~2.5% to 3% of overall capacity). Increased annual capital expenditure from Rs 55 crores to Rs 65 crores (18% increase). Rs 5 crores of increased CapEx allocated towards renewables, mainly solar energy and storage. Investment in cellar capacity expansion. Land acquisition at Domaine Sula facility in Karnataka to support long-term hospitality growth. Focus on sustainability with a target to have 70% of energy from solar by 2026 (currently just above 50%). Continued CapEx investment in sustainability initiatives, including re

Future growth expectations in sales/revenue/volumes?

The company expects continued strong double-digit growth in the Elite & Premium wine segment by volume and value. Revenues from wine tourism, including DTC wine sales, are projected to exceed Rs 90 crores this year, contributing significantly (15-18%) to overall revenues. Own brands, especially Elite & Premium categories, are expected to grow faster than wine tourism revenues going forward. The company aims to increase premiumization as a key growth driver, focusing on wines priced above Rs 700. Expansion in tier one and tier two cities through increased sales staff and retail store openings i

Future growth expectations in earnings/operating earnings/profits/EPS?

Sula Vineyards has delivered six consecutive quarters of year-on-year growth in revenue, EBITDA, and PAT, reflecting strong execution and growth momentum. The company expects continued double-digit growth in its Elite & Premium wine segment, driving value and volume increases. EBITDA margin improvements are anticipated to be stable around current high levels (31.6% in Q2), though management keeps an open mind on further increases. EPS grew 15% year-on-year in H1 FY2024 and is expected to support strong earnings growth in coming periods. Growth in wine tourism revenues (around Rs 90+ crores cur

Sula Vineyards LtdQ2 FY24Beverages

Sula Vineyards Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹137P/E: 44.7Market Cap: ₹1.2K CrSector: Beverages

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

The company expects continued strong double-digit growth in the Elite & Premium wine segment by volume and value.
Revenues from wine tourism, including DTC wine sales, are projected to exceed Rs 90 crores this year, contributing significantly (15-18%) to overall revenues.
Own brands, especially Elite & Premium categories, are expected to grow faster than wine tourism revenues going forward.
The company aims to increase premiumization as a key growth driver, focusing on wines priced above Rs 700.
Expansion in tier one and tier two cities through increased sales staff and retail store openings is expected to support volume growth.
The anticipated 2024 grape harvest is expected to be strong, supporting production to meet increasing demand.
Overall, the company remains optimistic about sustaining revenue and volume growth driven by premiumization and expanding market reach.

Margin guidance

Category 3

Sula Vineyards has delivered six consecutive quarters of year-on-year growth in revenue, EBITDA, and PAT, reflecting strong execution and growth momentum.
The company expects continued double-digit growth in its Elite & Premium wine segment, driving value and volume increases.
EBITDA margin improvements are anticipated to be stable around current high levels (31.6% in Q2), though management keeps an open mind on further increases.
EPS grew 15% year-on-year in H1 FY2024 and is expected to support strong earnings growth in coming periods.
Growth in wine tourism revenues (around Rs 90+ crores currently) is expected but may not outpace owned brand growth, with own brands (especially Premium & Elite categories) forecasted for faster expansion.
Capacity expansion and operational efficiencies, along with premiumization strategy, underpin confidence in sustained profitability and earnings growth going forward.
The company is optimistic about resolving pending VAT refunds and excise matters, which can positively impact financials.

See what Sula Vineyards Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

The company is very comfortable on the financing side as highlighted by CFO Abhishek Kapoor.
They have increased annual capital expenditure from Rs 55 crores to Rs 65 crores, funded comfortably.
Borrowing costs rose only by 60 basis points despite benchmark rates increasing by 110 basis points.
Credit rating upgraded by CRISIL from ‘A positive’ to ‘A plus stable’, aiding better borrowing terms.
There was no explicit mention of any new fundraising through debt or equity in the call.
The focus seems to be on sustainable growth funded by existing financial resources and improved borrowing costs.

Order book

The transcript does not provide specific details on the current or expected order book or pending orders for Sula Vineyards Limited. However, relevant points regarding capacity and investments include: - A small capacity expansion of 3.5 lakh liters at the DD unit in Maharashtra (~2.5%-3% of overall capacity) to support expected strong harvest. - Built-out civil infrastructure allows rapid addition of tank capacity based on harvest expectations. - Current utilization is around 80%-85% of storage capacity, considered full utilization. - Plan to increase annual capital expenditure from Rs 55 crores to Rs 65 crores, including cellar capacity expansion and renewables. - Additional land acquired at Domaine Sula (Karnataka) for future hospitality operations growth. No mention of specific order backlog or pending orders was made during the call.

See what Sula Vineyards Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

Small capacity expansion at DD unit in Maharashtra by 3.5 lakh liters (~2.5% to 3% of overall capacity).
Increased annual capital expenditure from Rs 55 crores to Rs 65 crores (18% increase).
Rs 5 crores of increased CapEx allocated towards renewables, mainly solar energy and storage.
Investment in cellar capacity expansion.
Land acquisition at Domaine Sula facility in Karnataka to support long-term hospitality growth.
Focus on sustainability with a target to have 70% of energy from solar by 2026 (currently just above 50%).
Continued CapEx investment in sustainability initiatives, including renewable energy, to reduce carbon footprint and future power costs.

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Sula Vineyards Ltd Q2 FY24 Earnings Call Analysis

Revenue guidance

Fundraise plans

Capex plans

How does Sula Vineyards Ltd rank in Beverages?

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What Sula Vineyards Ltd's management said in earlier quarters

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