Wonderla Holidays zooms 20%, hits 52-week high on robust Q1 results

The company reported profit after tax of Rs 64.38 crore in Q1FY23 as against Rs 8.51 crore in Q4FY22 and net loss of Rs 13.25 crore in Q1FY22.

Shares of Wonderla Holidays were locked in 20 per cent upper circuit at Rs 336.05 after it hit 52-week high on the BSE in Thursday’s trade. The surge comes after the company reported robust earnings as profit after tax (PAT) grew to Rs 64.38 crore for the quarter ended June 2022 (Q1FY23) as against Rs 8.51 crore in the corresponding quarter of previous fiscal (Q4FY22).

Sequentially, the company’s total revenue from operationsmore-than-doubled to Rs 149.42 crore from Rs 57.69 crore, whereas it posted operational revenue of Rs 4.35 crore in Q1FY22.

The stock surpassed its previous high of Rs 289.50 that it had touched on August 8, 2022. In the past one month, it zoomed 50 per cent, as against 9 per cent rise in the S&P BSE Sensex. On Thursday, August 11, the counter saw huge trading volumes as 2.59 million equity shares representing 4.6 per cent of total equity changed hands on the NSE and BSE.

Since the pandemic started in early 2020, the resulting collapse of travel demand due to border closures severely disrupted travel and tourism worldwide. The whole tourism industry stopped abruptly due to the pandemic’s disruption and suffered a substantial financial loss. From FY2021 to early part of FY2022, tourism, travel, and hospitality continued to be the hardest hit sectors with highly anaemic performance numbers.

Wonderla is one of the most famous amusement park chains in India and operates three amusement parks in Bangalore, Kochi, and Hyderabad. The company is also operating high quality leisure resort attached to the amusement park.

The management said that the company is taking several short-term and long-term strategic initiatives to accommodate the changing trends and patterns in order to utilise available market opportunity.

“In the coming years, our focus will be on leveraging digital marketing, scaling content, consistent park activities, innovative rides, well-managed parks, and seamless experience for the customers. All these efforts in totality are expected to attract more footfalls and hence contribute to the company’s profitability,” the management said in their FY22 annual report.