Wonderla Holidays Ltd
NSE:WONDERLA
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
Financial Services
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Mastercard Inc
NYSE:MA
|
Technology
|
| US |
|
Abbvie Inc
NYSE:ABBV
|
Biotechnology
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Realty Income Corp
NYSE:O
|
Real Estate
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
614.85
1 080.05
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Mastercard Inc
NYSE:MA
|
US |
|
|
Abbvie Inc
NYSE:ABBV
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Realty Income Corp
NYSE:O
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Wonderla Holidays Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to Wonderla Holidays Limited Q1 FY '24 Results Conference Call hosted by ICICI Securities Limited. As a reminder, all the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities. Thank you, and over to you, sir.
Good morning, everyone. On behalf of ICICI Securities, I'd like to welcome everyone to the Wonderla Holidays Q1 FY '24 Results Call. From the management, we have with us today Mr. Arun Chittilappilly, the Managing Director; and Mr. Arun Sreenivasan, the DGM, Finance and Accounts. I'd like to congrats with the company for posting yet another strong quarter. I'd now like to hand it over to the management for their opening remarks. Thank you, and over to you.
Hi, thank you so much for the introduction. Good morning, everyone. Thank you for joining this con call today. I extend a warm welcome to all of you to discuss our Q1 earnings. FY '23 was a spectacular year for us after enduring 2 challenging years. We've been able to achieve extraordinary results in the last year. Our footfall revenue path, EBITDA all have reached all-time highs in the last financial year itself. And we were hoping that the growth momentum will be continued. And we also have a lot of innovative right shows, and we're able to revolutionize the concept of entertainment that capture millions of visitors who came from into our part. All this dedication and strategic approach has established as one of the largest amazing companies in the country. Our strategies in digital marketing have been remarkable and enabling us to reach our audience with relevant promotions in excessive camping. We have done a lot of musical events festivities and occasions to visit – and our endeavor is to create more occasions to visit Wonderla. During the quarter, we witnessed a footfall of 11.02 lakhs. We are now comparing post-COVID numbers, keeping base FY '23. Bangalore Park saw a footfall of 4.69 lakhs visitors. Kochi Park registered 3.19 lakhs and Hyderabad 3.14 lakhs. The ARPU for the quarter was INR 1,626 an increase of about 25% Y-o-Y. The increase in ARPU was driven by healthy growth in non-ticket revenue, along with encouraging response from walking and groups and all aspects of our customer base. The construction of our fourth part in Odisha is in full swing, and we are working hard to finish it on time. We will also be starting work on our construction of our fixed part in Chennai after receiving Ms. Ruby approvals to start construction. We also have made some significant changes in our senior management, and we are happy to announce the appointment of Dheeran Singh Choudhary as Chief Operating Officer for the company. Dheeran brings with him 15 years of experience working in marketing and ops and you were associated with companies like Zomato or Red Bull, et cetera. Its experience, expertise and insights in leadership will be instrumental in achieving our goals going forward. On behalf of Wonderla, I would like to extend a warm welcome to him. Now moving on to the financial performance for the quarter. Our revenue for the quarter stood at INR 185 crores, up by about 24% compared with last year. EBITDA for the quarter stood at INR 123 crores, up by 30% Y-o-Y. Our EBITDA margin stood at 64%, having improved by 260 basis points. PAT for the quarter was at INR 84.5 crores, a huge 31.2% growth and the margin -- PAT margin is at 44%, highest it's ever been. As we continue to be debt-free and cash is, we ensure that our ability to make strategic investments and maintain high profitability. Looking at the future, we are excited about all the opportunities that are coming our way to set up a new path and to collaborate with other people, other business offices to set up park. I think it's going to be a very rewarding journey with us. With this, I will conclude my speech, and I'll now open the forum for questions.
Thank you very much. We'll now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Karan Khanna from Ambit Capital, please go ahead.
Thanks for the opportunity and congratulations on a great quarter [indiscernible]. My first question is on your thought process behind your ARPU versus if I look at the footfall growth because in Bangalore, you've shown 11% footfall growth despite a 21% growth in your ARPUs well in Kochi and Hyderabad, the ARPU growth has impacted your footfall significantly. So do you believe that Bangalore as a micro market is more resilient to price hikes and you could take possibly another 20% price hike without impacting the footfall much? And when you talk about Kochi and Hyderabad, what's your strategy going to be here in terms of increasing your ARPU? Or will the focus be on footfall?
See, I think one of the things that you also remember is that we were already running full, if you remember my con call from Q1 FY '23. Our parts are already running pretty much full. The only thing we could now do is to look at how we can maximize revenue potential from past is already on at capacity. Last year, because it was COVID first year post-COVID, we had an unusually large size of group in all the parts, actually, especially in Kochi. So one of the reasons why the footfall could have grown better 2 parcels because we got a higher percentage of retail versus group footfall. But having said that, it's not really much of a worry for us because post-COVID, we didn't expect all the parts to perform at the same level. Bangalore, obviously is the biggest city in the most wealthiest in terms of disposable income. I think it continues to be the highest, and that's reflected here as well. And also, Bangalore has always been our most popular parks is all are always higher than the other parts. So that's because the brand is from there. So in a way, that continues. I'm not really worried about footfall growth because even in spite of doing much higher ARPUs, 25% higher ARPU this year. Footfalls are not really deep on going down by 1% as a company. So it's not really much of an issue for us.
Sure. That is helpful. Yes, yes. Please go ahead.
Yes, that's it.
Sure. Second question is on your discussions. You've been having discussions with other state governments, including MP Goa, Panjab, Gujarat. So how soon could this possibly materialize for the company?
I think 1 or 2 projects will be as announced this year, this financial year. The rest, we want to do it stage by stage as and when we get favorable proposals from state government, we will look at it and we will decide. As of now, we already have 2 parts in construction. So we are not very aggressive in getting new projects, but we also want to see who -- we have a lot of interest from various state governments. So we are talking to many of them and some time to time we'll amount.
Sure. Regarding the hiring of Mr. Dheeran Choudhary as a COO, could you highlight key initiatives you would be responsible for? And how do you intend to use this capability and experience of scale business?
So he is somebody who got a lot of expertise in business and improving yield and especially sales within the parks and those kind of things we want to improve. A lot of efficiencies can be so in every sense, he will be a Chief Operating Officer. He will work directly under me. He will also have a charge of P&L. We will have a P&L focus, obviously and operations. So these are the 2 things, operations of the parks and resort and P&L focus is what he's going to broadly do. That it will evolve over time.
Sure. And then last question is on your resort business. So what are your plans on scaling up rooms and offerings at your Bangalore resort? And are you also planning to add resorts at the other locations?
Yes, yes. We are actually in the process of finalizing plans to upgrade our results. We've already done some work in this area. We've already upgraded our bar response. We have a new convention stay. But more and more refurbishments and upgrades are coming to the resort. And yes, we will be looking at building our next result in Hyderabad, but it will not happen in this financial year. Maybe I think you will take it up next year.
Thank you. Next question is from the line of Kaustubh Pawaskar from Sharekhan with BNP Paribas, please go ahead.
Thanks for giving the opportunity and congrats for a good set of numbers. My first question is on the non-ticketing revenues, which grew by around -- sorry, ARPU, which grew by around 26% for you. So just wanted to understand how much is the growth in ticketing revenues? And how much was the growth in non-ticketing revenues?
Both have grown -- I think the higher growth has come in non-ticket revenue. And ticket revenue has also grown up by about 18% to 18% compared to last year. But non ticket revenue has also grown much more than that, more than 18%.
Okay. And the higher growth in the non-ticketing revenues is because of the initiatives, what you have recently focused largely on the other various initiatives taken on the food part that is helping you to achieve good growth in the non-ticketing revenues?
Yes, correct.
Okay. And though this quarter, we can understand it is because of the high base, the footfalls were flat. But do you still believe that 5% to 6% growth on an annual basis in terms of footfall is achievable considering various initiatives you have in the coming quarters. And for the entire year, 5% to 6% average footfall growth is achievable?
Yes, that's what we are aiming for. But I mean, having said that, this is the first normal year we are having after 2, 3 years, right?
Right.
So there may be some changes and put people spending capacity, people are more busy. So I mean trips, -- things are getting back to normal in that sense. So because of that, I think there will be some differences compared to how it was last year. So hard to predict how it is, but we are reasonably confident that we should be able to get at least 5% footfall growth.
Right. My third question is on the new states where you are planning to come up with the projects. So it will be in line with what you are having the park in Odisha, a smaller park where you would be having around 25 to 30 rides and the model will be more on the lease base kind of a thing where you'll be having the land from government on a lease basis and you will be putting CapEx behind only setting up of the park. So it would be a similar model?
Yes, it will be similar. It depends on the size of the market. So some markets, we are also talking to, for example, Ahmedabad, Gujarat. So those will be larger investments, but in a smaller state, like other cities like Indore and maybe even Goa be smaller investments.
Right. And one last one on the events, the Father's Day or some of the events which you have been launching into the past, what kind of incremental footfalls you are helping you to achieved today? Help us understand, on a particular day when there is a calibration, what kind of footfalls you're achieving or the capacity…
Yes, it depends on the kind of initiatives. Some initiatives will have used traction and create a lot of footfall. Some initiatives do not. That's why we need to keep doing different, different things. But overall, it definitely has a positive effect on our footfall and just the buzz in the market about the brand. We are always in the news. So there's always something happening. People like to check out our website more and more. The number of people who are coming to our site has more than doubled in the last 2 years, more than double, I think triple. So all that, I mean, so there is multiple reasons why they're doing that. [indiscernible]
Yes. Is it helping you for more in walk-ins or even groups are attracted towards it?
Mostly walk-in, but then walk-in always has an effect on groups also. So that's how it is.
[Operator Instructions] Next question is from line of Angad from Monarch Networth Capital, please go ahead. Angad may I request on unmute to line and go with a question, please?
Am I audible now? Sorry, yes. Congratulations on the good set of numbers, sir. I have 2, 3 questions. First, you mentioned that you will announce 1 or 2 projects in this financial year regarding the other cities. Will these projects also be on the same line as the Bhubaneswar Park or you will have -- is your strategy for that?
I just answered that question. Depending on the city, we will decide. So some of the larger cities, obviously, we will do a larger project, smaller cities into a smaller project.
Okay. Sir, what is the split between the groups and working for the 3 parks for this quarter?
Arun, can you just – Arun Sreenivasan split of group and walk in?
Yes, yes. So group and working overall as a company, we have achieved 15-ish to 85% ratio.
That's not of good ratio for Q1, I think last year, it was, I think, 22 and 88 or something.
23% to 77% last year.
23% to 77%, okay. Yes, that's different.
Sir, and what is the percentage of tickets that are booked by the online one, sir, for this quarter?
Online is roughly about 15% to 20% online.
Okay. Yes. Other questions have been answered. That's it from my side. Thank you.
Thank you. Next question is from the line of Tejas Shah from Spark Capital, please go ahead.
Thanks for the opportunity and congrats to the whole team on a good set of numbers. Arun, you spoke about Bangalore's resilience versus the other market. So I just wanted to see if you can share some insights. Is it largely the spending power, which is higher? Or are you reading any other trends also in these micro-markets?
See, Bangalore is the largest city in South India in terms of spending power. So definitely, there is a difference between Bangalore and Hyderabad. Although the difference is not much, there is a difference and maybe that's -- and also for us, Bangalore is a whole market, and it has always been the biggest and we've been there as a brand along it. Kochi is an exception, Kochi, but we've had a different brand and then it came on the 10 years back and things. So there is a bit of a -- yes, so also spending power in Kochi tends to be more price sensitive, whereas Hyderabad and Bangalore are not so pricing too. I think every city is slightly different, and that's why you're seeing that.
Sure. And when you measure net promoter score of all the 3 parks are they trending in the same direction at the same rate? Or there are some divisions there?
They are almost the same, there's not much of it in the company.
Okay. And lastly on, you spoke about some 2 to 3 projects in this financial year. So just wanted to know what kind of investments are we making in our project team in terms of managing 2 to 3 projects at the same time. And then what kind of capacity you are building for the future also how many projects we can handle at one point of time?
So we are recruiting a lot of people into our engineering and technology team. So they want to make it bigger. And right now, we have the capacity to handle 2 projects simultaneously and hoping that we can make that maybe 1 to 3 projects also at some point soon. But as of now, for the next 2 years, we finish and mines will be focusing on those 2. Of course, we'll keep signing on new projects if we feel that advantage is for us to go there.
Thank you. Next question is from the line of Devang Patel from Sameeksha Capital, please go ahead.
Hi, sir, I wanted to understand what is the ticket price increases you've taken in Q1? Earlier, you mentioned 10%, 12% hike, you'd already taken and that would be reflected in Q1, but the ticket price is Q-on-Q is much higher. And how much of this increase is because of the mix change?
So the Q1 will see the highest increase because we've increased our peak rates more than our normal rate. But Q2, obviously, our very differential compared to last year will be slightly lower. But having said that, there will be at least between 15% and 20% growth overall for the remainder of the year, 15% at least.
Sir, you mentioned walk-ins were 85% in Q1 and maybe Q1 last year is not comparable, but generally, what would have been the trend for workings in Q1?
Yes. Walking highest in Q1. It is correct. That's how usually -- that's how it's all. Last year, it's different. Yes.
And have we taken any measures to discourage group bookings? Or this is just -- in the normal course, we've seen more walk-ins?
See, first-year fourth quarter, which is last summer, we were a little more relaxed on group discounts because we wanted more footfalls to build that moment. And this year, what we have done is we've removed some of those extra discounts which you apply during the peak season. So discounts are lower during Q1.
And in this group bookings, we have seen the absolute number of, let's say, school children still growing Y-o-Y because the overall footfalls are lower.
School children, it's hard to predict yet because the first quarter, we don't get too many schools, it's mostly college kids and corporate. Schools are closed in Q1, right? So you don't get too many places.
Okay. And the parks are running full, as you mentioned earlier, are we accelerating our expansion plans at these 3 parts of...
We are spending roughly INR 70 crores on maintenance CapEx for the existing 3 parks. We are adding at least 5 attractions to each park this year. So that's on ongoing.
Is this included in the INR 70 crore CapEx that you mentioned?
Yes, sir.
Okay. And you mentioned you will add one more agreement this year, when would construction for that start?
Because I don't know we can't predict right now, but I'm thinking that as soon as one of our new projects that we are doing currently is that finishes, then we can look at the next one or maybe we could start earlier on it just depends on the timing of it. As of now, I think we should be able to sign at least one more project, and then we will take the call.
Okay. And can I particularly you've got the approval in June? Will we be able to finish it visit your -- or would we look at some...
Yes, Chennai is a project that we already planned everything, a lot of the architecture design and all has already been have executed. We were waiting for this crucial exemption to come through because we felt that it doesn't make sense for us to do it otherwise. It's a bad precedent for August. So that's why you've done it. And now we will start and we should be able to finish by June 2025.
Okay. Sir, if you can update us how many acres you're looking to take up in both Chennai and Orissa initially and what CapEx is a latest estimate?
We can't give you that information, but we will like to be something similar to our existing ratio.
Okay. Sir, and have you moved to digital marketing? How the total A&P spend has gone down or what we do in August?
No, A&P spend has not gone down. It's just more efficient at getting to people, and that's why you're seeing better numbers post-COVID compared to INR 3 crores because I think our marketing has become much more efficient. Also, we're doing many more things. So our advertising and marketing budget will not go down. It will continue as we will spend all that money. But because we want more and more footfalls and they're trying to build our brand in new states, in new areas and things like that.
Okay. And our other expenses have grown and at pace with the top line. So is this more subcontracting or what could you extract the group good?
Yes. Other expenses will also continue to grow with the top line. Yes, in line with what has happened before.
Thank you. Next question is from the line of Naman Shah from [indiscernible], please go ahead.
Hi, sir, congratulations on the good at numbers. My first question would be the growth CapEx for the existing parts, what would be the growth CapEx for the existing parts to attract more footfalls?
So they are spending roughly about INR 70 crores on maintenance CapEx for existing parts.
Okay. And you said that you're coming up with a new part that you're going to make an announcement this year. So will it be similar to our asset-light model thing, or?
Yeah, we are referring that. This depends on the -- like I said, it depends on the city that we are going to get signed up. Large cities, we will do larger investments, small cities will do smaller investments.
[Operator Instructions] The next question is from the line of Anuj Sharma from CM Investment Private Limited, please go ahead.
You see in terms of Chennai Park, how different will be the ride experience versus the Bangalore or the Hyderabad Park? Is it will be a completely different experience or there will be similarity between the experiences? And the reason I'm asking is the customers might be fungible from one place to another. So would somebody who's visiting a Bangalore Park, again to visit a Chennai Park?
So, yes. So a park in Chennai will be different from Bangalore and Kochi and Hyderabad. As Kochi and Bangalore are different from Hyderabad and vice versa, they're all slightly different. Chennai also will be different at least decent rates. And yes, you can expect it to be a little different from what we've done before.
So if somebody were to put a commonality percentage, what would be the commonality between all parks in terms of ride experience?
Common will be about 60%, 70% will be common and the 40% will be different.
Okay, all right. One more thing. We based our model earlier, we have reiterated that we would want to look like a 6 lakhs or similar models, but if you see globally, these models are under some challenge. So can we say that we have innovated our own model or the challenges we're…
Yes, we are not following -- I mean, we like to -- we compare to like that's the only other comparable player to what we are trying to do. But 6 lakhs in U.S. and U.S. is a very different market. They are in a very different maturity level and being level and all that. And the customer mix is also different. 6 lakhs, it depends mostly grew on a lot of young adults and local – the local part is similar, but they're more focused on young orders as against families. We are focused more on a family outing as against a young adult out. But we have a mix of hydrogen. So yes, it's similar, but it's also different.
Thank you. Next question is from the line of Naman from Elias, please go ahead.
Sir, my first question is on your current demand trends, if you could give us some sense, I mean, a website available in the public domain suggests website traffic seems to be down slightly on a Y-o-Y basis. So how is that playing out currently?
It's like I said, this year, we're not expecting footfalls to grow too much. It's like a consolidation year for us. So it's hard to predict and also of seasons will become a little more pronounced post-COVID because immediately after COVID was that, what do you call a driven travel phenomenon. That is more or less, I mean, it's not there anymore. So people are back to their routines and they travel at specific points in time. So that will definitely create a season and off-season. So that will be there, but I don't think it's -- like I said, we are expecting to maintain revenue growth what we have already projected for the year.
Sure. And sir, could you give us some sense in terms of the Q2, the month of, say, July? Was there some higher rainfall versus last year, which could have an adverse impact on demand specifically for the quarter, that could be more one-off led?
Hard to predict how the quarter will go over because they're still only just finished July, 1 month, right? So hard to say how it will go. But so far, it's looking okay, better than what we thought, considering all the rain thing.
Got it. And sir, could you -- is it possible to share some sense of the contribution of this non-ticket -- not non-ticket but these events that were hosting music festivals, et cetera. What's the contribution of that to the top line currently?
That will be adding roughly about 8% to 10% of extra top line.
And this wouldn't be there during pre-COVID?
Yes, it's not there pre-COVID.
Got it. And sir, does the footfall number also include footfall from these events or is that not included?
The event comes under non-ticket revenue.
Okay. So the footfall numbers would not include that?
Yes, yes.
Thank you. Next question is from the line of [ Dhimant Shah ] from ITI Mutual Fund, please go ahead.
Thank you for the opportunity. Quickly, if you can give us -- you have taken both the ticket price and the non-ticket price seems to have prepared meaningfully. But at the EBITDA level, we see not as much impact. So if you can clarify what is causing this number one. Number two, in terms of northern states, we were to get some approvals. So could you also enlighten us as to what is the date on that apart from the Chennai Park?
See, as far as we are concerned, EBITDA is tracking. So our margin has improved and EBITDA also improved. So I don't understand why you're saying that.
The average ticket price hike plus the non-ticket price hike, the way we see it. It needs to have some meaningful run down on the EBITDA margin. They are up by far and almost at a record level.
EBITDA margin also has gone up, right?
Yes, sure, sure. But when we see from Q1 to Q1, possibly is there something more to read to it, or?
I think, see, this year, also the other changes we've people costs have gone up significantly this year. About 20%, 25% has gone up. So those kind of things will also impact a little bit the margin because the cost of doing business is also going up, especially after COVID with the new hires and all that, the cost of hiring and retaining the is higher. So those kind of things are there. And operating expenses-wise, nothing else really has changed. Only our people costs have gone up a little bit.
Sure. And what about the approval, I think, Jharkhand or somewhere we had applied -- we had...
No, we're looking at Mohali in Punjab. So that also we are -- it's on aiming processing, and we'll let you know when there's something.
And one more on Northern state we were looking at?
We were looking at UP also to do something in the NCR area. So that also we are awaiting some waiting from [indiscernible].
Okay, okay. And secondly, on the CapEx side, do you have a mix of the Chinese equipment or is there a standardized approach over there?
We don't have Chinese equipment. I don't know where you got that information. We either make...
Do we have... No, I'm not saying that you have, I'm just asking do we have some lead [indiscernible]. So our equipment is predominantly European is it?
European or Indian.
Okay. And between, as somebody had asked previously between different theme parks, is there 1 or 2 or 3 things that you endeavor to differentiate? And...
See all our parts are different. If you come to our parts, you will realize that. So that we will continue to maintain. Each path is designed to its home city and the culture there and the architecture follows that design element and the rights are different. And depending on the spending capacity, we have more rights or less rights in the depending on whether range more or is it hot more we design the pot. So all our parts are designed differently. Of course, they are inspired by the same we thought, but the execution is slightly different, and that will continue for future projects.
Super, super. And lastly, if you can help us, overall, when you make your budget, what are the cornerstones that go into projecting how much growth you will possibly undergo in the short term and medium term?
I mean we are making educated guesses like everybody else, and we feel like the one [indiscernible] spend in Indian cities is only growing and it's growing at a [indiscernible]. People are more exposed. They are supposed to be sourcing media, they want more avenues for entertainment. I think COVID has also changed people thinking about spending on themselves spending on experiences and holidays. That is what you are seeing as also the change in terms of people spending parks in. Also, for example, it will go less and less to a multiplex sort of movie. I think some of those, there is some disruption happening there as well, right? So I think people now save and spend more for meaningful, bigger experiences, travel and things like that. And this is a sense that I get and this is not -- but I see this kind of trend happening all over the world.
No, no, fair point. But any critical inputs that you would want to enumerate which help us boil down to a number, which is as close as what you have projected?
It's hard to say that. I mean, I don't do project numbers and we just make educated guesses and say, okay, this is what we think will happen in this year and then we plan for that. Of course, things might not work out always, but just at that time, we should be nimble enough to change our strategy and look at all as something doesn't work that. That is how I look at it. Not that we are looking at any particular number.
Okay. So there is no planned as such growth level that you got out at the start of the year to the end of the year to achieve stated or walk towards the stated?
Yes, yes. That's what we do.
Thank you. [Operator Instructions] Next question is from the line of Gunit Singh from Counter Cyclical Investments Private Limited, please go ahead. Gunit Singh, may I request you unmute to line and go with a question, please? [Technical Difficulty].Next question is from the line of [ Raj Rishi ] from DCPL, please go ahead.
Hi, any plans to increase adjacencies other than amusement parks, like you have that hotel in one of your parks, so any focus on that?
Yes. So we are planning to add result to next stop will be Hyderabad after we do Bangalore. We are expanding our resort in Bangalore right now. And then after that, we will do Hyderabad.
So this would be a part of a plan, right? Each of your parks could have a hotel.
Yes, yes. It's always there in the master plan.
Okay. And this Bangalore Hotel, what kind of expansion are you doing?
We're adding about 40 rooms, we adding, convention space. We are adding some new attractions, we adding 2 new bars were country which the rooms, all that to give it an upgrade.
Okay. And how much land is unutilized in the current 3 parks?
About half of the land is unplaced.
And you can utilize the entire thing, right?
Yes, sir.
Okay. And any plans as to how you plan to utilize it?
So like this [indiscernible] room, we will use our plan and we are right, we will use a plan. When we add response, we use our plan. So the facility will keep growing.
Okay. And in how many years do you think you'll be able to utilize the entire land and the existing parks?
Should last us another 10, 15 years easily.
Okay. And this can also be a big play for weddings, et cetera, right, for your...
Yes, yes. So we are getting a lot of that kind of demand. That's why we are adding more space in the part.
Okay. And this would be the trend in your future parks also the same most.
Yes.
Okay. And sir, what's the main moat, which Wonderla has, say, entry of new players, international players, et cetera, if they also talk with state governments on an asset-light model say, Disney or something? Can you just elaborate what's your thought process on this?
Disney and all, we will not compete them because [indiscernible] very different price bracket on their investment and everything will be very, very different. So we don't see that as potential impact, that will only that happens, that will only grow the market because they cater to a very high-end premium kind of experience and people who can spend about INR 8,000 per day per person. That's the kind of number you need to go to our Disney Park.
Okay. So what kind of threat do you perceive from and from who for your...
We always say that our competition is not just other amusement park. We look at how to use entertainment for potential competition, including digital entertainment, other holidays, any data or how people spend their days or pre-holidays with their friends and family that will have a bearing on whether they want to go to an amusement park or not. But having said that, I do feel that the sector itself is very underrepresented in India. So as much as lot of –
I can't get you, under, what?
The sector is underrepresented in India are very few players in India. So there's a lot of scope for growth.
Okay. And sir, you would stick to this business area, right? Amusement park plus hospitality, et cetera. You would not venture into any other area.
Why do you-- I mean so anything I like to our entertainment, we will something that we keep exploring. For example, we want to look at some form of digital version of Wonderla some point, not maybe immediately but soon. So yes, so anything related to entertainment and outings where you feel we are relevant as a brand, we will look into that.
Thank you very much. As there are no further questions, I would now like to hand the conference over to Mr. Sumeet Khaitan from Orient Capital for closing comments.
Yes. Thank you, everyone, for participating in this conference call today. I would like to thank management of Wonderla for taking out the time and answering all the questions today. We are Orient Capital Investor Relations Advisor to Wonderla Holidays. For any queries, please feel free to reach out to us. Thank you so much.
Thank you all.
Thank you.
Good day.
Thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.