Wonderla Holidays Ltd announces financial results for Q1FY21

Wonderla Holidays Ltd. - India's leading Amusement park operator has announced its financial results for the First quarter ended on 30th June 2020 for the Financial Year 2020-2021.

Highlights:

- The Company's operations were shut down from the month of March 2020. This decision was taken by the management in accordance with the safety and precautionary instructions outlined by the State and Central Governments to prevent and contain the spread of Covid-19. Accordingly Kochi Park was closed from 11 March 2020. Thereafter Bangalore, Hyderabad Parks and the Resort were closed from 14th/ 15th March. As the spread of pandemic is continuing, the business for the first quarter was fully impacted with Nil operating Revenue. Accordingly, the performance for the Quarter ended 30th June 2020 has resulted a loss of Rs 14.51 crs against Rs 42.03 crs Profit After Tax declared by the Company during the corresponding period of last Financial Year.

- The Company could control the operating expenses during Q1 to Rs 11.90 crs as against Rs 49.03 crs during the corresponding period last year. The Company has taken various cost rationalization initiatives in the areas of payroll, advertising and marketing and other overheads including deferral of avoidable operating costs, through which the management could bring down cash burn significantly.

- The Company started a new initiative - Food Takeaway Outlet named "Wonder Kitchen" at Kengeri Satelite Town, Bangalore on 17 June 2020. The second outlet will be opened in Rajarajeshwari Nagar, Bangalore on 15th August. Similarly the Kerala outlet will be opened in Kakkanad, Kochi, during September and thereafter in Hyderabad. The Company is leveraging its vast and varied experience in food business gained over a long period through its multicuisine offerings in the restaurants in its Parks and Bangalore Resort.

Business Outlook:

Commenting on the results Mr. George Joseph, Joint Managing Director mentioned "our Company has been historically profitable and the loss reported in Q1 is solely on account of closure of business due to Covid Pandemic".

He further added that with the gradual opening up of the different segments of the economy we expect that the authorities will soon permit reopening of parks with strict health, safety and preventive protocol. We are continuously exploring ways and means to provide energising fun to our guests with all safety and preventive protocol.

The Company is using the period of 'no activity' for strategizing the way forward in areas of digital marketing, loyalty programme, customer relationship management, data analytics, employee training on the new health and safety protocol etc. We are confident that Wonderla will re-emerge stronger than before once normalcy returns.

Shares of Wonderla Holidays Ltd was last trading in BSE at Rs.141.6 as compared to the previous close of Rs. 139.95. The total number of shares traded during the day was 2160 in over 85 trades.

The stock hit an intraday high of Rs. 141.9 and intraday low of 140.05. The net turnover during the day was Rs. 304211.

Source : Equity Bulls

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