BUY (Maintained) 

CMP: INR 639 Target Price: INR 904 (INR 738)  41% ICICI Securities Limited is the author and distributor of this report

15 August 2023 India | Equity Research | Q1FY24 Results Update

Wonderla Holidays
Hotels

Stellar quarter, growth plans on track

Wonderla Holidays (Wonderla) delivered another strong quarter in Q1FY24 with revenue growing 24% YoY to
INR1.85bn and EBITDA growing 28% YoY to INR1.2bn led by a 25% YoY ARPU growth even as footfalls decline
marginally by 1.4% YoY. A higher share of retail customers (85% in Q1FY24 vs. 77% in Q1FY23) and focus on events
and non-ticket revenue enabled the company to deliver the strong performance. Both the upcoming Odisha and
Chennai Parks are on track to commence operations by Q1FY26. While we retain our footfall assumptions for FY24/25E,
we have raised our FY24/25E EBITDA estimates by 4.6% and 2.9% respectively, factoring in higher realisations.

We retain our BUY rating with a revised target price of INR 904 (earlier Adhidev Chattopadhyay
INR738) as we roll forward to 15x Sep’25 EV/EBITDA (earlier Mar’25) as [email protected]
Chennai/Odisha parks begin contribution to earnings. Key risks are decline in +91 22 6807 7451
footfalls and pricing. Saishwar Ravekar
[email protected]
Strong performance continues led by pricing uptick
In the first quarter post pandemic, the company’s Q1FY23 revenue was higher
by 27% over Q1FY20 (pre-Covid) levels at INR1.5bn primarily led by strong
recovery in footfalls across parks which increased by 24% to 1.12mn. In
Q1FY24, while overall footfalls across Bengaluru, Kochi and Hyderabad saw Market Data
a marginal YoY decline of 1.4% to 1.10mn, Bengaluru footfalls grew 11% while Market Cap (INR) 36bn
Kochi and Hyderabad saw a 8% and 10% YoY decline, respectively. However, Market Cap (USD) 435mn
Bloomberg Code WONH IN
a strong focus on realisations led to Q1FY24 overall ARPU growing 25% YoY
Reuters Code WOHL.NS
to INR1,626 leading to Q1FY24 revenue growing 24% YoY to INR1,846mn with 52-week Range (INR) 658 /316
an EBITDA of INR1,169mn (up 28% YoY) at an EBITDA margin of 63.3% (up Free Float (%) 30.0
219bps YoY). A higher share of retail customers (85% in Q1FY24 vs. 77% in ADTV-3M (mn) (USD) 1.2
Q1FY23) and focus on events and non-ticket revenue enabled the company to
Price Performance (%) 3m 6m 12m
deliver the strong performance. The management retains its FY24 guidance of
Absolute 40.9 50.5 78.3
5% overall footfall growth while pricing growth would vary depending on on Relative to Sensex 6.4 8.2 11.4
seasonality. While we retain our footfall assumptions for FY24/25E, we have
raised our FY24/25E EBITDA estimates by 4.6% and 2.9% respectively, ESG Disclosure 2021 2022 Change
factoring in higher realisations.
ESG score - - -
Environment - - -
Financial Summary Social - - -
Y/E (INR mn) FY23A FY24E FY25E FY26E Governance - - -
Net Revenue 4,279 5,041 5,503 7,286 Note - Score ranges from 0 - 100 with a higher
score indicating higher ESG disclosures.
EBITDA 2,102 2,492 2,703 3,682
49.1 49.4 49.1 50.5 Source: Bloomberg, I-sec research
EBITDA Margin (%)
Net Profit 1,490 1,748 1,906 2,466
EPS (INR) NM 30.9 33.7 43.6 Earnings Revisions (%) FY24E FY25E
EPS % Chg YoY NM 17.3 9.1 29.4
Revenue 3.3 3.3
P/E (x) 24.3 20.7 19.0 14.7 EBITDA 4.6 2.9
EV/EBITDA (x) 16.6 14.1 13.0 9.0 EPS 2.8 12.2
RoCE (%) 12.8 15.0 14.1 16.3
RoE (%) 15.6 15.7 14.7 16.2 Previous Reports
15-06-2023: Company Update
26-05-2023: Q4FY23 results review

Please refer to important disclosures at the end of this report

Wonderla Holidays | Q1FY24 Results Update | 15 August 2023

Debt free balance sheet and cash flows to spur future growth plans
As per company, construction work on the new Odisha Park is going on in full swing
while Chennai Park construction is expected to commence shortly (cumulative capex
of INR4.0bn for both parks over FY24-25E). We have assumed both parks to
commence operations from Q1FY26 and with net cash balance of INR2.5bn as of
Mar’23 and post-tax cumulative OCF generation of INR4.0bn over FY24-25E, the
company has adequate liquidity to fund new park capex. The company continues to
engage with State Governments across India (Madhya Pradesh, Uttar
Pradesh/Punjab) for new parks.

Q1FY24 results snapshot

Year ending March (INR mn) Q1FY24 Q1FY23 Q4FY23 YoY (%) QoQ (%)
Total Footfalls (mn) 1.1 1.12 0.8 -1.4 37.1
Total Operating income 1,846 1,494 986 23.6 87.3

Raw Materials 156 141 107 10.4 45.4

Personnel Cost 156 143 127 8.7 22.3
Other Expenses 366 297 328 23.4 11.6
Total Expenses 678 581 563 16.6 20.4

EBITDA 1,169 913 423 28.0 176.1

EBITDA margin (%) 63.3 61.1 42.9 218.7 2,036.80

Interest (Net) 1 1 1 155.5 101.2

Depreciation 101 91 90 12 12.9
Other Income 56 29 140 95.4 -59.9
Others 0 0 0 NM NM
Profit Before Tax 1,122 851 473 31.9 137.2
Taxation 277 207 122 34 127.9
Profit After Tax before ext.
845 644 351 31.2 140.4
items
Extraordinary items - - -
Reported PAT 845 644 351 31.2 140.4
Net margin (%) 45.8 43.1 35.6 266.5 1,011.20
Source: I-Sec research, Company data

Change in estimates
Revised Previous Change in estimate (%)
(INR mn) FY24E FY25E FY24E FY25E FY24E FY25E
Total Footfalls (mn) 0.35 0.36 0.35 0.36 - -
Revenues 5,041 5,503 4,881 5,326 3.3 3.3
EBITDA 2,492 2,703 2,381 2,626 4.6 2.9
EBITDA Margin (%) 49.4 49.1 48.8 49.3 64bps (19)bps
Adjusted PAT 1,748 1,906 1,701 1,700 2.8 12.2
Source: I-Sec research, Company data

India | Equity Research 2

Wonderla Holidays | Q1FY24 Results Update | 15 August 2023

Bengaluru Park Q1FY24 performance

Source: I-Sec research, Company data

Kochi Park Q1FY24 performance

Source: I-Sec research, Company data

Hyderabad Park Q1FY24 performance

Source: I-Sec research, Company data

India | Equity Research 3

Wonderla Holidays | Q1FY24 Results Update | 15 August 2023

Shareholding pattern Price chart

% Dec‘22 Mar‘23 Jun‘23 700
Promoters 69.7 69.7 69.7 600
Institutional investors 9.3 8.6 9.0 500
MFs and others 0.8 2.9 2.9

(INR)
400
FIs/Banks - - -
300
Insurance - - -
FIIs 8.5 5.7 6.1 200
Others 21.0 21.6 21.3 100
0

Aug-21
Feb-21

Feb-22

Feb-23
Aug-20

Jun-22
Aug-22

Aug-23
Apr-21
Jun-21

Apr-22

Apr-23
Jun-23
Dec-20

Dec-21

Dec-22
Oct-20

Oct-21

Oct-22
Source: Bloomberg Source: Bloomberg

India | Equity Research 4

Wonderla Holidays | Q1FY24 Results Update | 15 August 2023

Financial Summary
Profit & Loss Cashflow statement
(INR mn, year ending March) (INR mn, year ending )

FY23A FY24E FY25E FY26E FY23A FY24E FY25E FY26E

Net Sales 4,279 5,041 5,503 7,286 Operating Cashflow 1,883 1,909 2,068 2,625
Operating Expenses 2,177 2,550 2,800 3,604 Working Capital Changes 38 (28) 18 41
EBITDA 2,102 2,492 2,703 3,682 Capital Commitments (440) (2,400) (2,400) (600)
EBITDA Margin (%) 49.1 49.4 49.1 50.5 Free Cashflow 1,480 (519) (314) 2,066
Depreciation & Amortization 352 428 455 482 Other investing cashflow (1,201) 270 297 326
Interest expenditure 3 3 3 3 Cashflow from Investing (1,641) (2,130) (2,103) (274)
Other Non-operating Activities
245 270 297 326
Income Issue of Share Capital 0 - - -
PBT 1,992 2,331 2,542 3,523 Interest Cost 3 - - -
Profit / (Loss) from Inc (Dec) in Borrowings (3) (3) (3) (3)
- - - -
Associates Dividend paid (77) - (165) (198)
Less: Taxes 502 583 635 1,057 Others - - - -
PAT 1,490 1,748 1,906 2,466 Cash flow from Financing (77) (3) (167) (200)
Less: Minority Interest - - - - Activities
Extraordinaries (Net) - - - - Chg. in Cash & Bank 202 (252) (185) 2,192
Net Income (Reported) 1,490 1,748 1,906 2,466 balance
Net Income (Adjusted) 1,490 1,748 1,906 2,466 Closing cash & balance 1,357 1,105 921 3,113
Source Company data, I-Sec research Source Company data, I-Sec research

Balance sheet Key ratios

(INR mn, year ending ) (Year ending )

FY23A FY24E FY25E FY26E FY23A FY24E FY25E FY26E

Total Current Assets 1,877 1,918 1,792 4,122 Per Share Data (INR)
of which cash & cash eqv. 1,357 1,105 921 3,113 Reported EPS 26.3 30.9 33.7 43.6
Total Current Liabilities & 1,664 2,100 2,210 2,389 Adjusted EPS (Diluted) 26.3 30.9 33.7 43.6
Provisions Cash EPS 32.6 38.5 41.8 52.1
Net Current Assets 213 (182) (418) 1,732 Dividend per share (DPS) 2.5 2.5 3.0 3.0
Investments 1,203 1,203 1,203 1,203 Book Value per share (BV) 167.9 195.9 226.1 266.2
Net Fixed Assets 8,415 8,086 7,731 11,349
ROU Assets - - - - Growth (%)
Capital Work-in-Progress 444 2,751 5,051 1,552 Net Sales NM 17.8 9.2 32.4
Total Intangible Assets - - - - EBITDA NM 18.6 8.5 36.2
Other assets - - - - EPS (INR) NM 17.3 9.1 29.4
Deferred Tax assests - - - -
Total Assets 10,274 11,858 13,567 15,836 Valuation Ratios (x)
Liabilities P/E 24.3 20.7 19.0 14.7
Borrowings - - - - P/BV 3.8 3.3 2.8 2.4
Deferred Tax Liability 778 779 779 779 EV / EBITDA 16.6 14.1 13.0 9.0
provisions - - - - Dividend Yield (%) 0.4 0.4 0.5 0.5
other Liabilities - - - -
Equity Share Capital 566 566 566 566 Operating Ratios
Reserves & Surplus 8,931 10,514 12,223 14,491 EBITDA Margins (%) 49.1 49.4 49.1 50.5
Total Net Worth 9,496 11,079 12,788 15,057 Net Profit Margins (%) 34.8 34.7 34.6 33.8
Minority Interest - - - - Net Debt / Equity (x) (0.1) (0.1) (0.1) (0.2)
Total Liabilities 10,274 11,858 13,567 15,836 Net Debt / EBITDA (x) (0.6) (0.4) (0.3) (0.8)
Source Company data, I-Sec research
Profitability Ratios
RoCE (%) 12.8 15.0 14.1 16.3
RoE (%) 15.6 15.7 14.7 16.2
Source Company data, I-Sec research

India | Equity Research 5

Wonderla Holidays | Q1FY24 Results Update | 15 August 2023

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Wonderla Holidays | Q1FY24 Results Update | 15 August 2023

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