Wonderla Holidays


(..pd..) #208

New Chennai Park to drive growth: The Company plans to set up a fourth park by FY20 in Chennai & has
already acquired 60 acres land for the same. The construction for which will began in next two quarters
subject to approvals. The park is expected to be operational by FY21E. This along with the Hyderabad plant
we believe would be the next leg of growth for the company going forward.
 EBITDA margins improve due to higher contribution from non-ticketing revenue: The Company’s EBITDA
margins have increased from 18.8% in Q2FY17 to 22.5% in Q2FY18. The share of Non-ticket revenue
improved from 23.1% in Q2 FY17 to 26.9% in Q2 FY18. Higher non-ticket revenue was driven by introduction
of new F&B offerings and sale of costumes which were made mandatory for water rides on introduction of
dress code. The management expects to increase the share of non-ticket revenue to the global standards which
is ~34%. This will further improve the company’s performance.
 Well positioned in the amusement park space: WHL is well placed in the amusement park space where it
has strong presence in south India. In addition, introduction of new rides and new park at Hyderabad &
Chennai respectively will continue to keep healthy footfalls growth in coming years. Also, the company’s
focus on increasing non-ticket revenues is expected to drive margins.


(narendra) #209

Wonderla launches space flying experience ride at Hyderabad park7c5eb5a0-2d2b-4921-8a5d-c764eb0a60ab.pdf (144.8 KB)


(Divyanshu Taneja) #210

Has sanjay bakshi exited wondela , found somewhere written that sanjay bakshi has exited


(rajput.delhi) #211

no sir…not as per Dec shareholding pattern.


(Vivek) #212

(vpbalu) #213

GST for Theme parks and water parks reduced to 18% from 28% in the GST council meeting. Should help Wonderla


(bmathew) #214

(Amitdarji) #215

Wonderla Result Out…


(..pd..) #216


(NATARAJAN) #217

(Jay Sanjay Badiyani) #218

The company had said the last year that q3 footfalls were low on account of demonitisation. However the footfalls of q3 fy 18 were even lower than qe fy 17. Stagnating footfalls is a big cause of concern for a company that trades at such valuations

Disc: not invested


(atulgupta80) #219

It’s a stock for very very long haul. Just keep accumulating it through SIP. There will not be any fireworks :fireworks: in this stock. However, it will compound wealth over 10 years with a 80%+ probability. One can look at life cycle of similar operator in US NYSE:FUN


(Manojreddym) #220

i thought of performing an analysis on the profitability of Wonderla after hyderabad park became operational. Company doesnt provide any details relating to park wise profitability so i had to take certain assumptions for arriving at the impact
Observation 1
Revenue for 9 months based for bangalore and Kochi park for the last 3 years have more or less remained stable- May be because of introduction of introduction of Service tax in FY 15-16 on amusement parks and Introduction of GST @ 28% in the current year. However the government has reduced the rates of GST to 18% from Jan 18. Hope that a stable tax regime continues from hereon.

9 months Comparative analysis Rs. In Lakhs
Particulars 2017-18 2016-17 2015-16
Bangalore- Park
No. of Footfalls 7.6 8 9.18
Avg Ticket Revenue 961 931 791
Avg Non Ticket Revenue 268 213 170
Revenue from Park 9,340 9,152 8,822
Bangalore- Resort 850 943 815
Kochi
No. of Footfalls 6.9 7.7 8.23
Avg Ticket Revenue 724 696 659
Avg Non Ticket Revenue 224 154 137
Revenue from Park 6,541 6,545 6,551

Observation 2
As per my assumptions the company is yet to reach cash break even for hyderabad park. However it has reduced its cash loss from 17 Crores to 5 Crores for 9 months. i believe hyderabad park will reach reach from loss to profit in the next 2 years and from then this should become an interesting story.
i have assumed the operating expenses from Kochi and Bangalore park is same for all 9 months period for FY 15-16, 16-17 and 17-18.
Attached my calculation sheet

Disclosure: Invested. on the assumption that hyderabad park will reach profitability and as the profitability for last 3 years has been adversely affected by impact of indirect taxes collected from customers which has reduced the demand.From hereon its effect should stabilise
Wonderlaa 9m analysis.xlsx (10.6 KB)


(rollnball) #221

will the kaveri river water disputes going on, political pressures effect the park construction in chennai ?

Even IPL in chennai seems to be jeoperady due to this

any views will be appreciated


(visanty) #222

Sir,

What is the discount rate for the DCF target of Rs 377.

Regards,
Santosh