Mumbai | Leading amusement park operator Wonderla Holidays today reported a tepid 3 per cent rise in net profit at Rs 12.77 crore in the December quarter due to poor gate collections during the busy picnic season, following government curbs on schools in two key markets it operates, after spate of recent sexual assaults on school children.
The Kochi-based company said its gross revenue rose 19 per cent to Rs 49.5 crore but the same could not be converted into better bottom-line as the company had an unplanned shutdown in the Kochi park and additional spends on staff training for its upcoming project in Hyderabad.
However, managing director Arun K Chittilappilly expressed confidence that the company will be able to meet its revenue growth target of 20-25 per cent to Rs 185 crore this fiscal. Footfalls to the parks were flat during the quarter due to government restrictions on educational institutions on picnics and outings, both in Bangalore and Kochi after a spate of rapes and sexual harassment of school kids in Bangalore during the quarter, which resulted in no footfall in Bangalore in the otherwise peak picnic season for school kids, the company said.
He said the company has begun the work on Rs 250-crore Hyderabad project, which will be completed by April 2016. He added that the company has already spent Rs 65 crore into the project and does not need to raise debt to fund it. Work at the Hyderabad park is in full swing and 200 people are working on the project. We have enough cash balance to fund the project and have no plans to raise any debt for this. Our next project will be Chennai which will come up by 2019, Chittilappilly, said over phone.
Revenue from the Bangalore and Kochi amusement parks rose to Rs 44.87 crore during the quarter while the revenue from resort was Rs 2.8 crore. Operating costs for the quarter have increased mainly due to new recruitments done in existing parks for transfer to Hyderabad, and due to unscheduled maintenance of some rides and facilities, he added.