Wonderla Holidays posts handsome Q2FY16 results : Optimistic on festive season

Wonderla Holidays (WHL) declared its second quarter results yesterday. The company's net sales increased by 25.96 per cent to Rs 43.23 crore in Q2FY16 as compared to same period in previous financial year. The company witnessed 7 per cent growth in visitors during the September 30, 2015 quarter. According to the company's management, WHL had good footfalls at the park and resort during the festive seasons. The company's sale of services segment grew by 22.56 per cent to Rs 36.98 crore in Q2FY16 on yearly basis. Its sale of products segment revenue boosted by 50.55 per cent to Rs 6.25 crore during the quarter.

WHL's total expenditure rose by 21.08 per cent to Rs 28.52 crore in Q2FY16 on yearly basis. The company's total expenditure increased largely due to a 4.64 per cent increment in direct operating expenses, 9.55 per cent increment in employee cost during the quarter. Its other expenses doubled to Rs 5.56 crore in Q2FY16 on yearly basis.

The EBITDA of the WHL boosted by 36.6 per cent to Rs 14.71 crore in Q2FY16 as compared to same period in previous fiscal year. The company's EBITDA margin expanded by 266 basis points to 34.03 per cent in Q2FY16 on yearly basis. Its EBIT also rose by 62.87 per cent to Rs 10.78 crore in Q2FY16 on yearly basis as depreciation expense declined by 5.3 per cent to Rs 3.93 crore during the quarter. WHL's other income increased by 98.23 per cent to Rs 5.59 crore in Q2FY16 on yearly basis. Inspite of 53.99 per cent increment in tax expenses of Rs 4.05 crore, the company's PAT grew by 85.76 per cent to Rs 11.96 crore in Q2FY16. Its PAT margin expanded considerably by 890 basis points to 27.66 per cent in Q2FY16 on yearly basis.

On segmental revenue front, WHL earned 82.85 per cent from Amusement Parks segment, 12.32 per cent from Other segment and remaining 4.83 per cent from Resorts segment during Q2FY16.

WHL's shareholding pattern indicates that FII holdings remain unchanged to 9.13 per cent and DII holdings expanded by 136 basis points to 3.34 per cent in September 2015 quarter. After declaration of the result, share price of the company on bourses increased by 6 per cent to Rs 314.8 on October 26,2015. Today, the scrip is increased by 1.65 per cent on bourses in early trades and is trading at Rs 316.15 on intraday basis.

WHL's park in Hyderabad is progressing as per scheduled and it expects the park to be commercially operational from Q1FY17. The company utilized Rs 47.7 crore funds out of raised IPO funds for its amusement park at Hyderabad during the quarter.

WHL is in the business of amusement parks and resorts. The Company's operating segments include amusement facilities, resort and others. It operates two amusement parks in Bangalore and Kochi under the brand name Wonderla. Wonderla amusement park in Kochi is located approximately 15 kilometers from Kochi city and includes over 59 amusement rides. Wonderla amusement park in Bangalore is located at Mysore road approximately 28 kilometers from Bangalore city. It is spread across 82 acres of landscaped garden and has over 60 rides.