Wonderla Shares Fall Over 5% Due To Challenging First Quarter
Wonderla's net profit fell 25.1% year-on-year to Rs 63 crore in the quarter-ended June, according to the exchange filing.
Shares of Wonderla Holidays Ltd. fell over 5% on Thursday after its profit slumped 25.1% due to a challenging first quarter. The company's net profit fell to Rs 63 crore in the quarter-ended June, as compared to Rs 84 crore for the same period last year, according to the exchange filing.
Its revenue dropped by 6.5% to 173 crore for the three months ended June 2024.
Operating income—or earnings before interest, taxes, depreciation, and amortisation—fell 22% year-on-year to Rs 91 crore. The Ebitda margin narrowed to 52.9% from 63.4% over the same period last year.
Quarter one of fiscal 2025 for Wonderla Holidays has been challenging, said Arun K Chittilappilly, managing director of Wonderla Holidays Ltd., due to the unprecedented heatwave in many states like Bengaluru and Kochi. “Heatwave along with election-related disruption prevented us from getting good footfall.”
Chittilappilly highlighted that the amusement park and other recreation industries heavily depend on weather conditions. “Any kind of inclement weather can affect our business.”
This makes it difficult for them to predict the future outcome, but they remain optimistic that things will get better.
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Shares of Wonderla Holidays fell as much as 5.51% to Rs 834 apiece, the most since July 29. It pared losses to trade 4.83% lower at Rs 840 apiece as of 10:53 a.m. This compares to a 0.28 advance in the NSE Nifty 50.
The stock has risen 34.71% in the last 12 months. Total traded volume so far in the day stood at 9.4 times its 30-day average and declined by 0.36% year-to-date. The relative strength index was at 34.51.
Out of three analysts tracking the company, two maintain a 'buy' and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 51.6%.
