WONDERLA HOLIDAYS 2018-19 Annual Report Analysis

Sun, 31 Mar

WONDERLA HOLIDAYS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

WONDERLA HOLIDAYS Income Statement Analysis

• Operating income during the year rose 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 40.9% in FY19 as against 33.0% in FY18.
• Depreciation charges increased by 8.2% and finance costs increased by 24.2% YoY, respectively.
• Other income grew by 24.0% YoY.
• Net profit for the year grew by 43.9% YoY.
• Net profit margins during the year grew from 14.2% in FY18 to 19.6% in FY19.

WONDERLA HOLIDAYS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	2,706	2,820	4.2%
Other income	Rs m	78	96	24.0%
Total Revenues	Rs m	2,783	2,917	4.8%
Gross profit	Rs m	892	1,154	29.4%
Depreciation	Rs m	365	395	8.2%
Interest	Rs m	12	15	24.2%
Profit before tax	Rs m	592	840	41.9%
Tax	Rs m	207	286	38.0%
Profit after tax	Rs m	385	554	43.9%
Gross profit margin	%	33.0	40.9
Effective tax rate	%	35.0	34.1
Net profit margin	%	14.2	19.6

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WONDERLA HOLIDAYS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 1 billion as compared to Rs 839 million in FY18, thereby witnessing an increase of 63.2%.
• Current assets rose 149% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 10 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 11 billion as against Rs 11 billion during FY18, thereby witnessing a growth of 7%.

WONDERLA HOLIDAYS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	7,722	8,178	5.9
Current Liabilities	Rs m	839	1,369	63.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,622	11,371	7.1
Current assets	Rs m	733	1,825	149.1
Fixed Assets	Rs m	9,889	9,547	-3.5
Total Assets	Rs m	10,622	11,371	7.1

WONDERLA HOLIDAYS Cash Flow Statement Analysis

• WONDERLA HOLIDAYS's cash flow from operating activities (CFO) during FY19 stood at Rs 907 million, an improvement of 7.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -989 million, an improvement of 158.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -134 million, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -216 million from the Rs 220 million net cash flows seen during FY18.

WONDERLA HOLIDAYS Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	841	907	7.9%
Cash Flow from Investing Activities	Rs m	-383	-989	-
Cash Flow from Financing Activities	Rs m	-238	-134	-
Net Cash Flow	Rs m	220	-216	-

Current Valuations for WONDERLA HOLIDAYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 311.4, stands at 31.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 19.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	47.9	49.9
TTM Earnings per share	Rs	6.8	9.8
Diluted earnings per share	Rs	6.8	9.8
Price to Cash Flow	x	25.7	19.2
TTM P/E ratio	x	50.1	31.8
Price / Book Value ratio	x	2.8	2.2
Market Cap	Rs m	21,312	18,189
Dividends per share (Unadj.)	Rs	1.5	1.8

Ratio Analysis for WONDERLA HOLIDAYS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY19, from 0.9x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 57.1x during FY19, from 50.1x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 6.8% during FY19, from 5.0% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 10.5% during FY19, from 7.8% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 5.0% during FY19, from 3.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	0.9	1.3
Debtors’ Days	Days	16	19
Interest coverage	x	50.1	57.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	5.0
Return on equity	%	5.0	6.8
Return on capital employed	%	7.8	10.5

To see how WONDERLA HOLIDAYS has performed over the last 5 years, please visit here.

WONDERLA HOLIDAYS Share Price Performance

Over the last one year, WONDERLA HOLIDAYS share price has moved down from Rs 340.9 to Rs 311.4, registering a loss of Rs 29.5 or around 8.7%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for WONDERLA HOLIDAYS and quarterly results for WONDERLA HOLIDAYS)

Read: Latest Annual Report Analysis of WONDERLA HOLIDAYS