Company may open park in Odisha; TN project gets tax waiver
KOCHI: Wonderla Holidays Ltd has reported a huge drop in its net profit for the second quarter of the current year.
The company had to be content with net profit of a meagre Rs16 lakh for the second quarter of the current year ending September 30, 2019 compared with Rs94 lakh the company posted for the same period last year, representing an 83 per cent drop during the quarter.
Wonderla is evaluating the prospects of setting up an amusement park in Odisha following an offer from the Government of Odisha. The board has given an in-principle go-ahead for this project recently, according to a company statement.
Moreover, the Government of Tamil Nadu has agreed to give exemption to the company from levy of entertainment tax under Tamil Nadu Local Authorities Entertainment Tax Act for a period of 5 years commencing from November 1, 2019.
A company statement said it will soon commence construction of the Chennai Project, subject to necessary project approvals by the authorities there.
Despite a poor performance for the second quarter, the company’s profit after tax (PAT) or net profit for the half year ending September 30, reported an year on year increase of 24 per cent, from Rs33.91 crore to Rs42.19 crore.
Commenting on the performance during the quarter, George Joseph, Joint Managing Director of Wonderla, India’s leading amusement park operator, said the slowdown in the economy has impacted the amusement park industry. He said the unprecedented rain-fall in Hyderabad, Kerala and Karnataka has severely dented the performance of all parks.
The net revenue for the second quarter stood at Rs43.92 crore against Rs43.36 crore over the corresponding period last financial year.
A company statement said the growth was impacted due to demand slow down and is largely attributable to excessive rain-fall and floods in Kerala and Karnataka as well as unseasonal rains in Hyderabad.
The footfall grew 60 per cent in Kochi and 5 per cent in Hyderabad during the quarter, while the Bangalore park witnessed a decline of 22 per cent in footfall during the period.
Wonderla has been recently certified as a ‘Great place to Work’ by the globally renowned Great Place to Work Institute. “This certification is recognized world over by employees and employers alike and is considered the ‘Gold Standard’ in identifying and recognizing Great Work Place Cultures,” the company noted.