Imagicaaworld Entertainment Ltd reports FY20 Results

Imagicaaworld Entertainment Limited, which operates Imagicaaworld - Theme Park, Water Park, Snow Park and a family hotel Novotel Imagicaa Khopoli, announced its unaudited Financial Results for the Quarter ending 31st March 2020.

The total revenue declined to Rs. 200.06 Cr in FY 20 vis-à-vis Rs. 240.37 Cr in FY19. During the year, the Amusement Park industry continued to be impacted from overall weak consumer sentiments & lower discretionary spending. In addition the business saw strong adverse impact of the COVID-19 pandemic in the last quarter (Q4 FY20), where footfalls were impacted from mid-February 2020.

However, the company was able to partially offset the drop in revenue by executing major cost saving initiatives by the management. These initiatives have resulted in total expense (before Depreciation, Impairment, and Interest expenses) to Rs 171.5 Cr in FY20 from Rs 193.1 Cr in FY19.

In FY20 Hotel Novotel Imagicaa performed well despite pressure on park business, with revenues of Rs 42.11 Cr vis-à-vis Rs. 38.74 Cr in FY19, a revenue growth of 8.7%. Apart from the additional inventory operational, the revenues were boosted by a growth in the Overall ARR (incl. F&B) which increased to Rs. 10,664 from Rs 10,205 in FY19.

Developments on account of Covid 19

Covid-19 has been declared as a global pandemic and the Indian Government has followed an approach of complete lockdown since March 24, 2020.

The Government of Maharashtra had directed the company to suspend the operations of its parks and hotel w.e.f. 16th March 2020. The company being part of the Travel / Tourism / Entertainment Sector, has been severely impacted in the short & medium term.

The company expects that the lockdown would be lifted in the near future. In India, guidelines on the lines of Global Parks such as Disneyland, Universal Studios etc have been prepared and shared with Local Government Bodies to explain readiness in consultation with the amusement park association IAAPI. Globally Entertainment Parks have started getting operational with selfimposed Safety and Hygiene guidelines. In the company's parks which are spread over 100 acres, social distancing is practically possible to be achieved and therefore would be able to comply with the safety and hygiene guidelines after the lock down is lifted.

The company has also taken steps for reduction in the fixed costs to offset part of the business lost during the COVID-19 closure. Since the company's business model is largely upfront cash, there are limited credit risks and the scope for losses on account of receivables is minimal. The management has taken due care so far to maintain the assets in a workable condition and thereby resumption of operations post-lockdown does not remain a constraint.

The Government of Maharashtra, vide order dated 6th July 2020, has allowed hotels to restart its business with effect from 8th July 2020. Thereafter, the Company is taking a view on restarting its hotel business.

Shares of Imagicaaworld Entertainment Ltd was last trading in BSE at Rs.4.77 as compared to the previous close of Rs. 4.68. The total number of shares traded during the day was 12031 in over 32 trades.

The stock hit an intraday high of Rs. 4.91 and intraday low of 4.52. The net turnover during the day was Rs. 56655.

Source : Equity Bulls

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