Wonderla reports Rs14.51 cr Q1 loss as parks remained closed

KOCHI: Wonderla Holidays, India’s leading amusement park operators with parks in Kochi, Bangalore and Hyderabad and few others in the pipeline including the Chennai project, has witnessed a steep drop in its revenue and profit during the first quarter ending June 30, 2020 due to the suspension of operations in all parks following the Covid 19 outbreak.

The company reported a net loss before tax of Rs20.59 crore for the quarter under review against Rs61.65 crore for the same quarter last year.

A write-back of deferred tax to the tune of Rs6.08 crore during the quarter diluted the net loss to Rs14.51 crore for the quarter compared with Rs42.03 crore the company earned during the same quarter a year earlier.

Total income from operations during the said quarter was a paltry Rs1.84 crore against Rs121.30 crore for the same quarter last year and Rs44.91 crore for the immediate previous quarter ending March 31, 2020

The expenses during the quarter under review were Rs22.43 crore against Rs59.65 crore a year earlier.

In view of the Covid 19 outbreak, the company’s management in accordance with safety and precautionary instructions outlined by the respective state governments closed down the parks since March to prevent and contain the spread of the pandemic.

Going concern

“This temporary shutdown resulted in lower or no operating income. The ability of the company to continue as a going concern is dependent on its ability to meet its obligations towards its stakeholders, creditors employees and the government during the interim period till the lockdown caused by the Pandemic is lifted and normal operations resume thereafter. Under the circumstances, the company remains a going up to 12 months from the reporting date,” the company stated.

Historically, Wonderla has been a profitable organisation. The company said it has liquid assets (cash balances and investments in mutual funds) of Rs110.11 crore as of June 30, 2020, which will cover significant near-term obligations and future commitments till the resumption of normal business activities.

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