SULA
VINEYARDS
Date: May 04, 2023
To, To.
Listing Department BSE Limited (“BSE”)
National Stock Exchange of Corporate Relationship
India Limited Department,
Exchange Plaza, 5th Floor, Plot 2 nd Floor, New Trading Ring,
No. /1, G Block, Bandra Kurla P.J. Towers, Dalal Street,
Complex, Mumbai — 400 001.
Bandra (E), Mumbai - 400 051
NSE Symbol: SULA BSE Scrip Code: 543711
ISIN: INE142Q01026 ISIN: INE142Q01026
Dear Sir/Madam,
Sub: Submission of Investor Presentation FY23 & Q4 FY23
Please find attached herewith the investor presentation on the Financial Results of Sula
Vineyards for the quarter and financial year ended March 31, 2023.
This is being submitted in compliance with Regulation 30(6) of the SEBI (Listing Obligations
and Disclosure Requirements), Regulations, 2015, as amended.
The same is also hosted on the Company's website at https:/sulavineyards.com/ir
relati hp
You are requested to kindly take the same on your records.
Thanking you,
For Sula Vineyards Limited
Company Secretary and Compliance Officer
Membership No.: A33566
Encl: As above
Sula Vineyards Limited
(formerly known as Sula Vineyards Private Limited)
Regd. Office: 901, Solaris One, N.S. Phadke Marg, Andheri (E), Mumbai 400069, Maharashtra, India.
Tel: 022-6128 0606/607 Fax: 022-2684 6064 Email:
[email protected] CIN: L15549MH2003PLC 139352
Investor Presentation
FY23 & Q4FY23
1
Safe Harbour
This presentation has been prepared by Sula Vineyards Limited (the “Company”) solely information purpose only and should not be deemed to
constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or
subscribe for any securities of the Company, nor shall it or any part of it or the Fact of its distribution form the basis of, or be relied upon in
connection with, any contract or commitment, therefore. The financial information in this presentation may have been reclassified and
reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company before making any decision
on the basis of this information.
This presentation contains statements that may not be based on historical information or facts but that may constitute forward-looking
statements. These forward-looking statements include descriptions regarding the intent, belief or current expectations of the Company or its
directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties and actual results may differ from those in such forward-looking
statements as a result of various factors and assumptions which the Company presently believes to be reasonable, but these assumptions may
prove to be incorrect. Any opinion, estimate or projection constitutes a judgment as of the date of this presentation, and there can be no
assurance that future results or events will be consistent with any such opinion, estimate or projection. The Company does not undertake to
revise any forward-looking statement that may be made from time to time by or on behalf of the Company.
No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the
accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation.
Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this
presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. By viewing this
presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the
Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential
future performance of the business of the Company. None of the Company, their affiliates, agents or advisors,, promoters or any other
persons that may participate in any offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss
howsoever arising from this presentation or its contents or otherwise arising in connection therewith.
2
Table of Contents
01
FY23 Highlights
02
Business Snapshot
03
Financial Statements & KPIs
3
FY23 Highlights
4
Executive Summary
Market leader with close 29.1% EBITDA margin India’s best-selling red,
to 60%+ market share in for FY23 vs. 25.6% for white, rosé & sparkling
premium wines1, FY22 wines
Winery capacity of 16.7 Sourcing from 2,800+ acres
of vineyards, significantly
Sula’s Shiraz Cabernet -
Mn liters, amongst the India’s largest selling wine
top 5 wineries in Asia higher than the next two
wine producers in India by value
One of the world’s Certified as Great Place
most visited vineyards; Strong focus on
to Work in CY21 &
340,000+ visitors2 sustainability
CY22
Source: Company data
Notes: 1) Includes Elite and Premium wine categories;2) As of FY23
5
Key Highlights – FY23
Revenue from operations growth : 22% YoY at Rs. 553 Cr
EBITDA margin at 29.1%; EBITDA growth : 38.7% YoY
PAT margin : 15.2%; growth of 370 bps over FY22
Financials EPS growth of 50% YoY from Rs.6.8 to Rs.10.2
Own Brands Revenue growth : 26% YoY; constituting 87% of revenue
Of this, Elite & Premium wine revenues contributed 72%, growing 29% YoY
Own Brands Crossed 1 million cases, registering volume growth of 19% YoY
Wine Tourism revenue growth : 30% YoY
Footfalls : 3.4 lakhs+
Wine Tourism Tastings across the country : 1.7 lakhs, up 80% from FY22
6
Profit & Loss Statement – FY23 & Q4FY23
Particulars (Rs. Cr.) FY23 FY22 Y-o-Y Q4 FY23 Q4 FY22 Y-o-Y
Revenue from Operations 553.2 453.9 21.9% 120.0 112.1 7.1%
Own Brands 480.7 380.9 26.2% 103.5 90.4 14.5%
Wine Tourism 45.0 34.6 29.9% 12.5 10.5 18.1%
Other Income 3.5 2.8 25.2% 0.9 0.7 21.7%
Total Income 556.7 456.7 21.9% 120.9 112.8 7.1%
Cost of Goods Sold 133.1 117.1 13.8% 23.6 20.9 13.9%
Excise Duty on sales 36.9 29.5 24.6% 6.8 5.6 17.1%
Employee Benefits Expense 77.5 65.3 18.5% 20.3 18.0 12.9%
Other Expenses 148.2 128.6 15.2% 38.5 38.9 -1.1%
EBITDA 160.9 116.1 38.7% 31.7 29.4 8.0%
EBITDA % 29.1% 25.6% - 26.4% 26.2% -
Depreciation and Amortisation Expenses 25.9 23.6 9.6% 6.8 6.1 12.5%
Finance Costs 21.1 22.9 -8.0% 4.8 4.7 2.7%
Profit before Tax (PBT) 114.0 69.5 63.9% 20.1 18.6 7.9%
PBT % 20.6% 15.3% - 16.7% 16.6% -
Total Tax Expense 29.9 17.4 72.1% 5.8 5.0 16.2%
Profit for the year (PAT) 84.0 52.1 61.2% 14.2 13.6 4.8%
PAT % 15.2% 11.5% - 11.9% 12.1% -
Diluted EPS (Rs.) 10.18 6.79 49.9% 1.66 1.72 -3.3%
7
Strong Financial Profile
Revenue from operations (Rs. Cr.)1 Revenue split by business segments
0.1% 0.3% 0.6% 0.3%
5.4% 4.3% 7.6% 8.1%
553.2 7.9% 4.7%
31.0% 26.6%
521.6
453.9
418.0 86.9%
83.9%
63.6% 68.7%
FY20 FY21 FY22 FY23
Own brands Third party brands Wine tourism Others
& distribution
Own brands revenue by categories
32.2% 31.4% 29.4% 27.7%
FY11 FY14 FY19 FY20 FY21 FY22 FY23
67.8% 68.6% 70.6% 72.3%
Includes 1) Discontinuation of beer
Emerged stronger
Rs. 103.6 cr standalone revenue of business in PADPL;
after COVID-19
PADPL, which ceased to be a subsidiary 2) Muted gross sales due to
pandemic FY20 FY21 FY22 FY23
of the Company from Apr 2021 COVID-19
Elite & Premium Econmony & Popular
Source: Company Data
Notes: 1) For FY20 and FY21, Revenue from operations also includes the revenue contribution from Sula’s erstwhile subsidiary, PADPL, which had a standalone revenue of Rs 103.6 cr in FY20 and Rs 60.8 cr FY21. PADPL ceased to be a
subsidiary with effect from April 1, 2021; 2) Includes the revenue from sales of alcoholic beverages imported by Sula and revenue from brands distributed by PADPL in FY20 and FY21 8
Strong Financial Performance on All Matrix
150000%
100000%
50000%
Gross profit and % margin EBITDA and % margin PAT and % margin
Gross Profit (Rs Cr) % margin EBITDA (Rs Cr) % margin PAT (Rs Cr) % margin 15.2%
0%
65.3% 66.7% 29.1% 11.5%
25.6% 84.0
53.3% 369.0 160.9
47.8%
296.4 52.1
15.4% 116.1 0.7%
249.2 -3.1%
223.8 9.7%
64.5
50.5 3.0
-15.9
FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23
Return on capital employed (ROCE) Return on equity (ROE) Leverage ratios
23.04% Debt to Equity Debt to EBITDA
20.9%
7.3x
15.8%
13.2% 4.7x
1.2x 2.0x
10.7% 1.0x 1.2x
0.6x
4.1% -5.2% 1.0% 0.4x
FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23
FY20 FY21 FY22 FY23 9
Business Snapshot
10
Sula is the Undisputed Leader of the Indian Wine Industry
Secondary Sales breakup
4%
Among Top 15 Domestic presence in 23%
most followed vineyards 26 States & 6 UTs
in the world on Instagram
Promotional 72%
activities by Pan-India presence
influencers
On-Trade
6 1 Off-Trade
Direct to Consumer
Strong 50 Distributors, 11
123k+ followers on
Digital distribution Corporations, 14 Licensed
Instagram and 5 network resellers, 7 Company
124k+ followers on marketing 2
depots, 3 Defence units
Facebook
4 3
International Leader in On-
trade Sula’s distribution presence
presence
Owned production facility
Exports to 20+ 24,000 + Leased production facility
countries Points of Sale
Corporate office
Regional offices 11
Pioneer of Wine Tourism Business in India Leading to Strong D2C Presence
Creating wine culture through a combination of resorts, tasting rooms and restaurants, which has made Sula the leading D2C alcobev brand in India
340,000+ 1,30,000 2 Vineyard resorts
Footfall of visitors In person tastings in FY23 in Nashik
vs 85,000 in FY22
310,000+ INR 10,500+
Bottles sold via Avg. room revenue
D2C channel1 in FY23
Source: Company data; Notes :1)For FY23
12
Sustainability is Key Focus Area
2MW installed solar PV capacity, providing 50%+ of annual energy needs in FY23
Generated >4 million kWH from solar energy at Sula’s owned and leased facilities in Maharashtra
and Karnataka in FY23
Rainwater harvesting reservoirs at all facilities with storage capacity of over 36.8 mn liters;
Reduced water usage per case produced by over 11% in last three fiscal years
Member of the International Wineries for Climate Action (“IWCA”), which is part of a global
campaign, led by UN and its member wineries committed to achieve net zero emissions by 2050
Sourcing over 96% of packaging material locally since FY20
Optimizing packaging materials using lightweight bottles
13
Key Business Strategies for Future
Continuous focus on Own Brands Focus on premiumization of product
portfolio
Increasing wine awareness and
Continue to focus on wine tourism
consumption, and penetrating further
to bring in new consumers
into Tier-1 and 2 cities in India
Strategies
Pursue strategic investments and
acquisitions in the Indian wine Effectively use digital media to
industry increase awareness of wine in India
Continue to make sustainability and climate change
readiness as the heart of Sula’s long-term strategy
14
Financial Statements & KPIs
15
FY23 Balance Sheet (Consolidated)
Equity and Liabilities (Rs Cr) Mar-23 Mar-22 Assets (Rs Cr) Mar-23 Mar-22
Equity 532.0 395.3 Plant, Property & Equipment (net) 397.1 344.4
Equity share capital 16.9 15.7 Right use of assets 9.3 9.3
Other equity 515.2 379.5 Capital Work in Progress 1.9 1.0
Lease Liability 5.8 6.2 Goodwill & Other Intangible assets 6.9 7.5
Borrowings 54.3 48.1 Loans & Investments 1.7 1.9
Long term provisions - 2.0 Other financial assets 36.8 21.0
Deferred tax liability (net) 18.2 16.9 Non Current tax assets (net) 0.2 0.2
Total Non-Current Liabilities 78.2 73.2 Other non-current assets 3.1 2.7
Lease Liability 5.1 4.7 Total Non-Current Assets 456.9 388.0
Borrowings 137.5 180.9 Inventories 178.9 162.3
Trade payables 82.1 67.4 Trade receivables 114.5 109.4
Other financial liabilities 21.9 14.2 Cash and bank balances 33.8 19.6
Other current liabilities 19.8 18.7 Loans 1.6 1.2
Income tax liabilities (net) 2.6 1.5 Other financial assets 88.6 73.6
Provisions 2.2 2.7 Other current assets 7.1 4.5
Total Current Liabilities 271.1 290.1 Total Current Assets 424.5 370.5
Total Equity and Liabilities 881.4 758.6 Total Assets 881.4 758.6
16
FY23 Cash Flow Statement (Consolidated)
Cash Flow Statement (Rs Cr) Mar-23 Mar-22
Profit before Tax 114.0 69.5
Adjustment for Non-Operating Items 44.6 48.8
Operating Profit before Working Capital Changes 158.5 118.4
Changes in Working Capital -42.5 -14.3
Cash Generated from Operations 116.1 104.1
Less: Direct Taxes paid -27.8 -16.7
Net Cash from Operating Activities 88.3 87.4
Cash Flow from Investing Activities -72.7 -56.8
Cash Flow from Financing Activities -9.4 -61.3
Net increase/ (decrease) in Cash & Cash equivalent 6.2 -30.6
Add : Cash and cash equivalents at the beginning of the year 10.2 40.8
Cash and cash equivalents at the end of the year 16.4 10.2
17
KPIs–Wine Business & Wine Tourism Business
Particulars ( Rs. Cr) 2023 2022
(A) Wine Business 506.7 416.6
Own brands 480.7 380.9
– Elite (%) 23.9 24.1
– Premium (%) 48.4 46.5
– Economy (%) 11.5 13.6
– Popular (%) 16.2 15.8
Third Party Brands and distribution business 26.0 35.7
(B) Wine Tourism Business 45.0 34.6
(C) Others 1.6 2.7
Revenue from operations (A+B+C) 553.2 453.9
Year on year revenue growth (%) 21.9% 8.6%
Revenue contribution (%)
Wine Business - Own Brands 86.9 83.9
Wine Business - Imports 4.7 7.9
Wine Tourism Business 8.1 7.6
Others 0.3 0.6
18
KPIs–Wine Business & Wine Tourism Business
Particulars - Wine Business 2023 2022
Elite and Premium
Number of cases 5,50,278 4,42,833
Volume contribution (%) 51.9 49.6
Revenue of operations (Rs. Cr) 347.6 268.8
Revenue contribution (%) 72.3 70.6
Economy and Popular
Number of cases 5,10,974 4,50,712
Volume contribution (%) 48.1 50.4
Revenue of operations (Rs. Cr) 133.1 112.1
Revenue contribution (%) 27.7 29.4
Particulars – Wine Tourism Business 2023 2022
Average Room Revenue (ARR) (in Rs.) 10,568 10,367
Average Rooms Occupancy (%) 82.4 71.0
19
KPIs– Others
Particulars 2023 2022
Gross Margin (Rs Cr) 369.0 296.4
Gross Margin (%) 66.7% 65.3%
EBITDA (Rs Cr) 160.9 116.1
EBITDA Margin (%) 29.1% 25.6%
PAT (Rs Cr) 84.0 52.1
PAT Margin (%) 15.2% 11.5%
Net Asset turnover (Times) 1.0 1.1
Cash Conversion Cycle (days) 293 347
Days Sales Outstanding (days) 74 98
Days Inventory Outstanding (days) 424 449
Days Payables Outstanding (days) 205 200
ROCE – reported (%) 23.0% 20.9%
Net Working Capital Days 101 65
Debt to Equity Ratio (Times) 0.4 0.6
Debt to EBITDA Ratio (Times) 1.2 2.0
20
THANK YOU
21
