Q4FY21 Company Update - Wonderla Holidays - ICICI Direct

Wonderla Holidays reported a strong recovery in earnings post reopening of parks at Bengaluru, Kochi and Hyderabad in Q4FY21. Revenue for the quarter improved sharply from Rs. 4.9 crore to Rs. 33.3 crore QoQ though revenue remained down 21.4% YoY as parks were functional only during Thursday-Sunday till February 2021 while they remained open all seven days in March. The company achieved total footfalls of 3.11 lakh against 4.05 lakh last year. Thus, Wonderla managed to clock EBITDA of Rs. 2.5 crore vs. EBITDA loss of Rs. 10.1 crore in Q3FY21. However, it was down 49.3% YoY. Net loss of Rs. 4.9 crore is mainly attributable to depreciation charge while the company managed to report cash profit of Rs. 2.5 crore. The ongoing second Covid wave in India has again led to a closure of parks from April 2021. With debt free status and no capex in FY22E, we believe Wonderla should be able to tide over the Covid induced challenges in FY22E. While H1FY22E again looks tough, with easing of restrictions post stabilisation of infections (likely from H2FY22E) led by increased vaccinations, going ahead, in the country, we expect a rebound in demand from H2FY22E. This is expected to lead to healthy margins and profitability aided by tighter cost controls. While FY22E would be a mixed bag though better from FY21, we expect the company to attain healthy revenue above pre-Covid levels in FY23E. We also expect Wonderla to attain highest EBITDA margins leading the company to report PAT over Rs. 75 crore.

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Shares of Wonderla Holidays Ltd was last trading in BSE at Rs.213.05 as compared to the previous close of Rs. 209.2. The total number of shares traded during the day was 50609 in over 986 trades.

The stock hit an intraday high of Rs. 218.05 and intraday low of 210. The net turnover during the day was Rs. 10841684.

Source : Equity Bulls

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