Wonderla net profit slips 8% on excess tax provisions

Thursday, May 21, 2015,21:46 IST By metrovaartha A A A

Mumbai | Leading theme park operator Wonderla Holidays & Resorts today reported about 8 per cent drop in the March quarter net profit at Rs 6.6 crore on excess tax provision of Rs 3.14 crore pertaining to its Kochi park. Our bottomline in the quarter was impacted by an excess tax provision of Rs 2 crore towards entertainment tax and service tax disputes with our Kochi park.
While we agreed to part-pay Rs 2 crore towards entertainment tax dispute with Kochi Corporation, we also set aside Rs 1.14 crore towards service tax dispute dating back to 2011, again with regard to the Kochi park, its managing director and chief executive Arun K Chittilappilly said over phone from Bengaluru.
Accordingly, net profit for the quarter slipped to Rs 6.58 crore from Rs 7.15 crore, showing a decline of 7.89 per cent, he said, adding that gross revenue rose over 14 per cent to Rs 39.35 crore. The company pays 2 per cent entertainment tax in Kochi and 5 per cent in Bangalore.
Chittilappilly, however, expressed apprehension about the increase in service tax from next month to 14 per cent, and the overall profitability going forward. For the full fiscal, gross revenue including those from its sole resort in Bengaluru rose 23.23 per cent to Rs 192.2 crore, while net income for the year increased 27 per cent to Rs 50.63 crore as footfalls rose 2 per cent to 23.40 lakh, despite ban on schools from taking kids to theme parks in both Kerala and Karnataka.
On the status of the ongoing work on its third park in Hyderabad, which is a Rs 350-crore project, Chittilappilly said he is confident of commissioning next April. The Bangalore-based company has already invested Rs 60 crore and the remaining Rs 190 crore will be invested in this fiscal, he said, adding that 200 people are working on the project.
He also said that the company will shortly start land acquisition for the Rs 300 crore, 50-acre Chennai park, for which it will spend around Rs 80 crore this fiscal. The project is slated for commissioning in September 2018. Chittilappilly, however, ruled out any fund raising for these projects, saying that the company is well-capitalised.
On the resorts business, which contributes around 8 per cent of the revenue, he said occupancy rose 50 per cent this fiscal to 45 per cent. On business outlook, Chittilappilly sounded bullish, saying he expects around 20 per cent rise in revenues this fiscal as he sees the curbs on school picnics getting relaxed.