(Reuters) - India's biggest winemaker Sula Vineyards, reported a 37% fall in second-quarter profit on Tuesday, as a slowdown in discretionary spending, especially in urban areas, dampened demand.

Sula's consolidated net profit fell to 144.8 million rupees ($1.72 million) in the quarter ended Sept. 30, from 230.9 million rupees a year ago.

"Q2 was a subdued quarter, due to a slowdown in consumer discretionary demand, particularly in urban areas where 90% of our sales are concentrated," Chief Executive Officer Rajeev Samant said in a statement.

The company also faced technical issues with accessing New Delhi's Excise portal-used to place orders and update liquor stock-towards the end of the quarter, hurting sales, it said.

Sula's own brands segment, which contributes about 90% of the total revenue, saw a marginal 0.3% rise in revenue during the quarter. Its smaller wine tourism segment saw a 0.8% increase in revenue.

Sula's total revenue fell 1.1% during the quarter, while total expenses rose about 10%.

The winemaker's earnings before interest, tax, depreciation, and amortization margin contracted to 24.2% from 31.4% a year ago.

($1 = 84.3560 Indian rupees)

(Reporting by Ashna Teresa Britto; Editing by Abinaya Vijayaraghavan)