Wonderla Holidays –

Q2 FY 25 results and concall highlights –

Currently operational amusement parks –

Kochi ( since 2000 ) – 94 acres, 56 rides
Bengaluru ( since 2005 ) – 82 acres, 60 rides
Hyderabad ( since 2016 ) – 52 acres, 52 rides
Bhubneshwar ( since 2024 ) – 51 acres, 21 rides

Company makes 30-40 pc of its rides – in house, has a talented set of technicians for the same. Rest are imported

Q2 financial outcomes –

Revenues – 67 vs 75 cr ( down 10 pc )
EBITDA – 2.6 vs 26 cr ( down 90 pc ). Company incurred a one time launch cost for the Bhuvneshwar Park @ 4 cr in Q2. Also had to incur additional hiring costs for the Bhuvneshwar park which further compressed the EBITDA margins

PAT – 15 vs 13 cr ( due deferred tax reversals )

Park wise footfalls, revenues in Q2 –

Kochi @ 1.39 lakh. Revenues @ 19.8 vs 24.7 cr

Bengaluru @ 1.96 lakh. Revenues @ 28.4 vs 31.6 cr

Hyderabad @ 0.92 lakh. Revenues @ 13.5 vs 16.1 cr

Bhuvneshwar @ 0.24 lakh. Revenues @ 5.3 cr

Heavy rains in South India in Q2, landslides in Kerala did impact the footfalls

Added multiple rides to the Hyderabad park in Q2. Spent 15 cr on the same

New Park @ Chennai should go live in Q3 FY 26

Raising 800 cr via QIP – in order to fund expansions in future ( it ll be a mix of Equity 600 cr and Debt of around 200 cr – roughly ). This should be enough for company’s expansion for the next 5 – 7 yrs

A new – large size park in a city like Mumbai / Delhi should cost around 700-800 cr. For a tier 2 city like Mohali / Indore, it should cost them around 200 cr

Intend to add a min of 3 / max of 5 parks in the next 5-6 yrs

Saw encouraging footfalls in the month of Oct 24

Aiming to hit > 3 lakh footfalls in the first full year of operations @ Bhuvneshwar Park

It takes a min of 18 months to set up a park from scratch ( post all the clearances )

Company has surplus land in all their current parks. Company will keep adding rides to their existing parks to utilise the same

Current ticket : non ticket revenues are 75:25. Aim to drive it towards 60:40 in next 4-5 yrs

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

This did not age well. It’s down 10% in a single session today. The stock nosedived into stage 4 before anyone could figure out what was happening. I’m invested and facing a significant loss.

This isn’t specific to finance or anything, but as Phantom fx is a Vfx company, here is their latest showreel (typically a collection of their best recent work)

PhantomFX VFX latest Showreel | Unleashing the Cinematic Magic

I also like the conservative nature of the management of Arman and indeed I was stunned to listen the previous con-call where they mentioned they have nil customers with those taken loan from 4+ lenders, specifically after listening to the con-call of CAG where they mentioned how the delinquencies are higher (in their portfolio) among those having 4+ lenders. So that gives me more conviction about Arman. Waiting for the Q2 results tho.

Credit access grameen mentioned about stable Q3 and things to improve from Q4 onwards. So this makes me ask a question since majority of the AUM Arman has in the MFI division and Arman also mentioned in the previous quarter con-call about how due to abundant of availability of lenders people are now not willing to attend JLG meets and other things. So I’m a bit conservative when we can see the growth in disbursements and thereafter profitability unless we see some consolidation on the supply side. So going forward I believe we can see some muted quarters for the best case scenario. Also the cycle has turned negative from last quarter only (i mean this is my understanding feel free to counter).

But yeah I agree about Arman being the best among best because of how Alok Patel works and how they have consistently came stronger after each crisis. That makes me want to bet on Arman even more. Planning to buy in tranches till the cycle reverse(given thesis doesn’t changes)

Disclaimer: Holding a small position.