Sula Vineyards Reports Positive Financial Performance in Q3, Highest Net Sales in 5 Quarters

Sula Vineyards, a midcap player in the breweries and distilleries industry, has recently declared its financial results for the quarter ended December 2023. The company has shown a positive performance in this quarter, with a score of 7 out of 10, an improvement from 1 in the last 3 months.

The net sales for the quarter were at Rs 193.49 crore, showing a growth of 46.6% compared to the average net sales of the previous four quarters. This indicates a very positive sales trend in the near term. Similarly, the profit before tax (PBT) less other income has also shown a significant growth of 74.6% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also increased by 72.0% compared to the average PAT of the previous four quarters, showing a very positive trend in the near term.

Sula Vineyards has also achieved its highest net sales and operating profit (PBDIT) in the last five quarters, indicating a positive trend in the near term. The company's operating profit margin has also improved, reaching its highest at 34.59% in the last five quarters, showcasing an increase in efficiency.

However, there are some areas that need improvement for Sula Vineyards. The interest cost has increased by 18.66% (QoQ) and is at its highest in the last five quarters, indicating increased borrowings. The non-operating income has also increased, but this may not be sustainable as it comes from non-business activities.

Overall, Sula Vineyards has shown a positive financial performance in the quarter ended December 2023. With increasing profitability and higher earnings per share, the company has created value for its shareholders. However, it needs to keep a check on its interest cost and non-operating income to maintain sustainable growth in the future. Based on these financials, MarketsMOJO has given a 'Hold' call for Sula Vineyards' stock.