On Monday, shares of recreational service companies such as Imagicaaworld Entertainment and Wonderla Holidays experienced significant demand, with a rally of up to 11% on the BSE in intra-day trading, owing to heavy volumes and expectations of robust earnings.
Imagicaaworld, the operator of Imagicaa, a theme park, water park, snow park, and family hotel Novotel Imagicaa Khopoli, achieved a new 52-week high of Rs 54.90, surging by 11% on the BSE in intra-day trade. The trading volumes on the counter more than doubled, with a total of 10.9 million shares having been exchanged on the NSE and BSE by 11:29 am.
Over the last three days, the stock of the company has surged by an impressive 44% following the announcement of the launch of its latest Waterpark, Aquamagicaa, in Surat, Gujarat. Aquamagicaa – Surat is now open for guests starting March 1, 2023 and boasts 16 water-based attractions and rides, imported from renowned international manufacturers, spread across a 4-acre plot in the heart of Surat city. The company has expressed its desire to extend the exceptional service experience that has been enjoyed by over 11 million guests at its flagship project in Khopoli.
Furthermore, the company’s Q3FY23 results, for the period of October-December, revealed its best-ever quarterly earnings before interest, depreciation, tax, and amortization (EBITDA) of Rs 32.4 crore, an impressive improvement over the Rs 10.2 crore recorded in Q3FY20. This growth can be attributed to strong business performance and prudent cost-control measures implemented by the company. The EBITDA margin showed significant improvement, increasing by a massive 2,460 basis points to 43.2% in comparison to Q3FY20.
Wonderla Holidays, the largest amusement park chain in the country, has reported a positive profit before tax (PBT) of Rs 7.05 crore in Q3FY23. This marks a significant improvement for the company, which has experienced two years of adverse Covid-19 impact. The business has shown excellent rebound and overall improvement in its operational health.
The company’s total revenue grew by 37 percent to Rs 75.1 crore in Q3FY23, as compared to Rs 54.9 crore in Q3FY20. This growth has been a positive indicator of the company’s future prospects.
Wonderla Holidays’ stock has also rallied, hitting a new high of Rs 464.35, rising by 3 percent on the BSE. In the past week, the stock has rallied by 13 percent, in contrast to the S&P BSE Sensex’s 1.8 percent rise.
In addition, the company reported a robust 85 percent year-on-year (YoY) increase in its profit after tax, reaching Rs 38.90 crore in Q3FY23. This healthy operational performance demonstrates the company’s resilience and ability to adapt to changing market conditions.
Wonderla Holidays has reported double-digit revenue growth across all its units, driven by robust footfall numbers. In the third quarter of the fiscal year 2022-23, footfalls for the quarter were recorded at 0.92 million, as against 0.72 million during the same quarter in the fiscal year 2019-20.
The company’s revenue from operations has increased by 71 percent quarter-on-quarter (QoQ) and 134 percent year-on-year (YoY) to reach Rs 113.2 crore. The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter came at Rs 56.45 crore, which is up by 190 percent QoQ and 295 percent YoY, with an EBITDA margin of 33.07 percent (up by 2,045 bps QoQ and 2,035 bps on a yearly basis).
According to the management, the significant boost in the number of visitors was due to the increase in domestic tourism, walk-in customers, and the revival of student excursion trips. The management expressed its satisfaction with the overall business performance during the quarter and stated that growth is expected to continue in the coming quarters. Additionally, the company has begun construction of a new park in Bhubaneswar, Odisha, with an aim to open it by 2025.
