Wonderla Holidays Q3 profit declines 4 per cent by Rs 12.3 crore

Wonderla Holidays, India's largest operators of amusement parks, tanked by 6 per cent after its third quarter results were declared.

The company's reported standalone net profit de-grew by Rs 12.26 crore for the quarter as against Rs 12.77 crore in the corresponding quarter of the previous year. Company’s standalone revenue grew by 6.5 per cent at Rs 50.42 crore as against  Rs 47.36 crore in the same quarter of the previous year.

It’s standalone core operating profit de-grew by 12.9 per cent at Rs 1820.2 crore along with operating margin drastically declining to 36.1 per cent as against 44.1 per cent in Q3FY15. Employee cost increased by 25.7 per cent to Rs 8.15 crore and other expenses increased by 166 per cent to Rs 7.5 core, which are the main reasons for the drastic decline in operating profit.

For nine months ended December 31, 2015, the company’s standalone net profit grew by 18.6 per cent to Rs 52.25 crore as against Rs 44.04 crore in the same period of the previous year. The company's revenue grew by 10.6 per cent to Rs 160.9 crore. Operating profit of the company grew by 4.33 per cent to Rs 73.2 crore along with the decline of margin by 289 bps to 45.5 per cent.

Recently the company has signed a Memorandum Of Understanding (MOU) committing to invest Rs 150 crore over the next two years to expand its existing amusement park in Bidadi (Bengaluru). The company expects expansion would commence from 1 April 2016 and will be completed by 31 March 2018.

On valuation front, the stock is currently trading at 35.5 time of price to earnings ratio with earning of Rs 10.4 per share on TTM basis. Today, the stock closed at Rs 366.45, down by 2.2 per cent.