Wonderla Holidays Limited — Investor Meet, 13-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: Wonderla Holidays reported Q2 FY25 revenue from operations at ₹67.4 crore, a decrease of 10% YoY from ₹75.2 crore. EBITDA dropped significantly by 90% YoY to ₹2.8 crore, with margins falling to 4%. Profit after tax saw a modest increase of 9% YoY to ₹14.7 crore, reflecting a PAT margin of 21%. For the half-year, revenue stood at ₹240.3 crore (-8% YoY), with EBITDA at ₹98.7 crore (-34% YoY) and a PAT of ₹78 crore, down 20% YoY. Challenges included lower footfall by 9% to 4.5 lakh and increased marketing and labor costs.

2. **Future Outlook and Growth Drivers**: Management expressed confidence in their growth trajectory, citing the successful launch of their Bhubaneswar park, which broadens their geographical reach. They aim to leverage non-ticket revenue strategies, focusing on high-value visitors amidst cautious discretionary spending trends. Expected expansions include the Chennai park, on track to open by Q3 FY26.

3. **Order Book and Operational Updates**: Management confirmed ongoing construction for the Chennai project and an ambition to raise ₹800 crore through equity for various projects over the next 7-8 years, highlighting a mix of debt and internal accruals for funding.

4. **Analyst Q&A Insights (Detailed)**: Analysts inquired about the fundraise mechanism, with management clarifying intentions to utilize a combination of equity, debt, and internal capital. There was emphasis on maintaining profitability despite rising costs, and management projected looser footfall growth and ARPU increases of 5% to 8% annually in established parks. They affirmed the support from tier 1 cities for future projects and indicated robust demand for their offerings.

5. **Market or Regulatory Updates**: No significant regulatory updates were discussed during the call that could impact strategy or operations.

6. **Strategic Focus Areas**: Management's strategic initiatives focus on expanding geographically while diversifying revenue through enhanced customer experiences and an emphasis on non-ticket sales. The positive outlook was underlined by an intention to resume aggressive investment in park expansions.

7. **Investor Insight**: The financial outlook, bolstered by strategic initiatives and geographic expansion, suggests a potential for medium to long-term growth. However, short-term challenges from weather impacts and rising operational costs should be monitored closely. Overall, the financial performance and planned expansions indicate a cautiously optimistic stance on holding the stock.