Wonderla Holidays Limited (WONDERLA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Wonderla Limited Q3 FY '20 Results Conference Call, hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities.

Yes. Thank you. On behalf of ICICI Securities, I'd like to welcome everyone on to the call today. Today from the management we have with us, Mr. George Joseph, the Joint Managing Director; and Mr. Satheesh Seshadri, the Chief Financial Officer. And now I would like to hand it over to the management for their opening remarks. Over to you, sir.

Good morning, everyone. On behalf of the management of the company, we extend a warm welcome to all of you. We are here on this conference call to discuss the performance of Wonderla Holidays Limited for the third quarter of the financial year 2019/'20. The third quarter is significant across the country as it usually marks the end of monsoon and head us into a new season with a pleasant weather, festivals and holidays. We see greater number of people head out for recreation. And at Wonderla, we provide an seamlessly convenient and safe experience for the masses. However, we saw a decline in the walk-ins attributable to poor consumer sentiment and less discretionary spend. At the same time, our efforts towards the increased market penetration and efficient BD network resulted in significantly higher group's footfall at our parks. Following this settlement of the service tax litigation and the Sabka Vishwas Legacy Dispute Resolution Scheme 2019, we recorded an exceptional item in the form of reverse of excess provision amounting to INR 15.57 crore. The company has opted to avail Sabka Vishwas Legacy Dispute Resolution Scheme 2019, announced by the Government of India, in September 2019. After this scheme, the company will get relief ranging from 40% to 70% of the disputed tax demand and full waiver of interest and penalty thereon. Accordingly, the payments made during the current quarter towards settlement of these pending litigations under the scheme and the earlier payments made under protests have been adjusted against the provision on the excess balance after the books are being reversed, are income dearly quarter ending 31/12/2019. Looking at the financial performance scorecard. The revenue for Q3 FY '20 are INR 70 crore, which is lower than -- lower by 7.9%. Our footfall declined by 5% and our average revenue per visitor was lower by 2.6%. Our Bangalore park, in particular, witnessed a decline of 22% in footfall, and our parks in Kochi and Hyderabad saw 2% and 9% growth in footfall, prospectively. Our Q3 EBITDA declined by 16% year-on-year from INR 29.7 crore to INR 24.9 crore. Our profit-after-tax for the quarter boosted by the exceptional item of INR 21 crores against of PAT of INR 14.5 crore reported in corresponding quarter for the previous year. Our cash PAT, that is PAT plus depreciation, increased from INR 24.3 crore in Q3 FY '19 to INR 31.5 crore in Q3 FY '20. On a 9-month basis, we saw our footfall increase by 2% on a year-on-year basis. Our 9 months revenue also increased by 3.1% Y-o-Y, from INR 221.2 crore to INR 228.4 crore. EBITDA for 9 months stood at INR 99 crores, marginally higher by 3% in comparison to 9-month FY '19. Profit after tax for 9 months stood at INR 42 crores an increase of 24.4% from the corresponding previous period. Our cash PAT stood at INR 63.2 crores, which also increased by 30% on the corresponding period. At our Bangalore resort, the occupancy rate for 9 months FY '20 was 49% and revenue stood at INR 9 crores, representing 5% [ rise over ] the corresponding 9 months of FY '19. We are now focused on getting the necessary approvals to begin the construction of our park in Chennai. Our Board has accorded final approval for going ahead with the Chennai project. We are glad to announce that the Board has approved the proposal for setting up another park in [indiscernible] after [indiscernible] the feasibility study, and we have decided to proceed with the project. As discussed in the previous quarters, we'll be taking an asset-light model to set up the park. We look forward to encouraging times ahead offers with multiple projects in the pipeline to deliver the next leg of growth. Our expertise in setting up and [indiscernible] in the past will be utilized to optimal levels, and we will provide updates on the progress accordingly. With this, let us start the question-answer question. Thank you very much.

[Operator Instructions] First question is from the line of [indiscernible] from Edelweiss Securities.

Sir, my first question is on the pricing and the entire footfall thing. If I see Hyderabad and Kochi has seen decent footfall growth in the current challenging times while Bangalore seen a 22% dip. You're attributing that to the discretionary slowdown, but we see a big divergence between the 3 parks. Now when I see the pricing, Hyderabad has seen a 6% dip in terms of pricing. So is Bangalore needing a price cut? Second, I see Wave Rider, a new ride coming in Bangalore, but do you need to do much more refurbishment like you did in Kochi. That's the requirement in the Bangalore park?

Yes. Bangalore park, of course, there's a decline by 22% in the footfall. I agree that -- I mean, while Bangalore had a dip, we had a -- I mean slightly higher footfall in Kochi and Hyderabad. But Bangalore is more affected because Bangalore, the industrial hub and the IT hub, a lot of SMI, SMEs and all that are affected on account of the slowdown, and there is a lot of trend spend in the auto sector. And I mean, the -- Bangalore, in fact, the city of Bangalore, is more affected. And we believe that, that is the reason why we have lesser footfall in Bangalore park. And coming to the pricing, as already mentioned, that the general footfall has come down. And therefore, we have been pushing, the groups, with our marketing activity. And when groups comes, we discount such -- I mean much more than the general market. So this has affected the [ RPV ] across all parks, especially Bangalore, and that is why there is [indiscernible] less. Coming to whether we need to take a price cut in Bangalore, I don't think that we will take a price cut, but probably we will maintain the same pricing and may come in much more marketing activity and communication in Bangalore. In fact, the last quarter, we have provided a very large amount for communication for Bangalore to step up the activity, marketing activity, and we hope slowly the footfall will come back in Bangalore.

Sir, the second related question and why I asked on pricing is now this coronavirus issue is quite high in terms of the media headlines. So obviously, in such circumstances, people would not like to go into high-population density, entertainment, et cetera. So do you see that impacting, corona in general, for all the 3 parts?

It is not impacted till now. We have not seen any impact till now, but with media and social media and all, this scare is being created. We don't know how it is going to impact. But I think we are all -- I mean [indiscernible] and even if it impacts, the impact will not be much. That's what we believe. And we hope that scare will not affect the footfall in our parks.

Sir, my second and last question is on the 2 new parks. So [indiscernible] asset-light. What does it mean? How is it different from, say, the Hyderabad park? Second, how do you get the funding for 2 parks because parallelly these 2 will happen? So on the base of 3, you're adding 2 parks parallelly.

Yes. I'll ask -- answer your second question first. I mean as we have already been mentioning for our Chennai park, we do not need any borrowing. In the sense, we have already spent about INR 108 crores. And we have about INR 149 crores, which is right now in the form of cash and investments. And that the general [indiscernible] during the construction period, which is around 18 months, inception to take that off, for the Chennai park. And the Odisha park is not going to come parallelly. It will be -- there'll be a lag of about a year between Odisha park and the Chennai park. And at best, we may have to go for a market borrowing of about maximum INR 100 crores, which would be a short-term borrowing, which can be repaid within is about 1 to 2 years by our internal accruals. And coming to the asset-light model of -- I mean -- the [indiscernible] park because the land price compared to Chennai is very, very competitive, very less, it is only around INR 3 crores compared to around INR 25 crores we have paid that the land cost in Chennai, plus, this is now only limited rights because the existing parks in under own [indiscernible]. How only about less than 10 rides and [ inhibited ] to a small area, and we hope to make it I mean much attractive by having only about 20, 22 rides, which is -- we'll be able to contain within about INR 100 crores investment. That's why we say it's an asset-light model.

Any comment on pricing in [ Odisha ]?

Could be between INR 500 -- INR 500 [indiscernible]. The certain parks, which are only having 9 rides, they charge INR 700 per adult and INR 1,000. Currently, they're charging INR 700 for adults and INR 1,000 for couples. So we will be able to have a competitive pricing compared to what is existing right now.

The next question is from the line of Tejash Shah from Spark Capital.

My first question is, sir, how do you define your competitive landscape for Bangalore park?

Competitive landscape?

Sir, when we compare our performance versus, let's say, other revenues in the same space, so if consumer is not coming to our park, they're actually spending somewhere else, so you must be comparing your numbers with -- obviously, there's no like-to-like park, but some other revenues. Just to comment whether we are losing market share or there is a general slowdown as such.

Now there is no listed NDC in -- which is operating in [indiscernible]. So we do not have any authentic figures, but we try to keep a track on the footfall on the base of our market intelligence and we find that all -- across all the park-, the slowdown impact is there, and the footfall have come down in our -- across all parks. Another way, in fact, we also see in malls and all that, the general crowd, which we saw the crowd full earlier that has generally come down in -- general [indiscernible] in Bangalore.

Sir, from your reading, would you like to call out any trend, be it transient or structural, which is actually leading to this kind of sharp drop in numbers because this is quite sharp.

Sharp. Yes.

So sir, any reason or anything that you're reading in consumer sentiment or behavior, which you would like to call out leading to this kind of drop?

As Joseph had mentioned at the beginning of the meeting, we have been consistently improving and reaching out the schools, colleges and corporates. Having our group performance is -- it has not come down, okay? And the third quarter is group quarter. And you will be able to achieve the numbers as far as the groups are concerned. Our concern is only on the walk-ins, which we are targeting now through separate marketing plan and other things, which we see in the days to come, will have an effect.

But [indiscernible] we see of [indiscernible] where we have seen these cycles in the previous years also right from [indiscernible] in 2008 and all that. If you look at -- I mean our Bangalore park peaked in the year 2014, '15. And before that, also, we have seen cycles, then it touched almost about 1.2 million in 2014, '15. Thereafter, it has been affected by the service tax and the ESP and all that. But then we have seen pickup in the last year, especially in the -- even in the first quarter of [indiscernible] year. But then second quarter and third quarter, we have been seeing this decline, and we see it, it means that with the economic revival, things will be reversed, and then we will see the footfall will be back as normal.

Sure. And sir, in Kerala and Hyderabad park, are we seeing any impact of this [ NTCA ] protest and all because we are hearing from other businesses and Kerala businesses have got disrupted because of this. Any feelers on that?

No. As of now, nothing. No impact on us. I think even on hartal days, when we had -- on account of -- I think Kerala had 1-day hartal, I mean, even on that day we had about 1,000 footfall.

The next question is from the line of [ Rohit Potti ] from [ Marshmallow Capital ].

Sir on the Chennai park, my question was, actually, if there is any upward reason on the CapEx number? Because I believe the original CapEx amount was INR 350 crores.

The CapEx -- projected CapEx was INR 365 crores for Chennai park. INR 365 crores, including the land.

Okay. So there is no [indiscernible] upward reason there.

There's more upside on that, but we are trying to contain below that. We -- our efforts will be to contain below that.

Understood. And so could you give us a timeline on when the Chennai park would be ready and when the Odisha park would be ready?

Yes. So we are talking, we are waiting for the approvals for the Chennai park. We have got fire approval now. We are waiting for the building approvals to come in. And what the construction period is about 18 months. So we are expecting by 1st October, 2021, to open the Chennai park, okay? As far as the Odisha park will be there, after a sizable construction work is completed for Chennai park, say, about a year time. After the [indiscernible], we are going to start the Odisha park development, okay? You can add -- clearly, add about 15 months from that. So we will start somewhere in January 2021. From there, it will take another 15 months minimum.

Understood. Okay. Fair enough. And I mean, I was surprised to hear that you already have broadly decided the pricing for the Odisha park despite it being around 2, 3 years out. So I'm getting there will be a [indiscernible] or have you already defined the pricing for the park?

These are based on current estimates, okay? What is the market absorbing today, okay? So it is based on the current footfall, current expenditures and what the market goes. And these are what we say [indiscernible] would be our likely launch price.

Understood, understood. Fair enough. And I mean, last -- so I just wanted to give a feedback that my wife and I, so we went to the Bangalore park, we had a wonderful time there. And something which I noticed there was that there were Airtel Hangout zones in the park and also -- I mean, I noticed advertisement on the snack stand of different FMCG products. So what I was curious to know about was that, is that a source of revenue that you're looking at to monetize the advertising space inside the park? Or is this something you didn't want to do to maintain customer experience?

See, the -- considering our business was very seasonal, okay, where our first quarter numbers are good about 40% and plus, and the other 3 quarters, there you can see it's not equivalent to the first quarter. So the advertising on holdings, okay, will be very minimal only at our park. The traction of that is not going to be any big number there.

Okay. So it's not something which you're planning to do? Because I was thinking that eventually, with 5, 6 parks, you have captive audience for a full day of around probably 4 million, 5 million in future, which I thought, advertiser will be eager to tap into going forward? And it's just something you're looking at it is what I'm wondering.

So what we are doing today is whenever this first quarter is there, what promotions, this FMCG, all the retail people want to do it, they do it during the first quarter inside the park. So we transfer the benefit to the customers. And we don't put any, but they are not putting [ hoardings ] in the park.

Yes. You are right. And that's something which really I appreciate as a customer as well. So when you say the promotions are transferred to the customer -- oh, you mean in the price, it is the FMCG player transfer into the customer directly is what you're saying, right?

I would say, they give you any quantity, extra quantity in the -- suppose it's fixed package, there's extra quantity, okay, 35%, 30% extra or the -- they give some bigger rides. This one, we just give it to the customer. We charge it only on MRP.

The next question is from the line of [ Kausko Bhawaskar ] from Sharekhan.

Sir, from your initial comment, it indicates that the focus now is more on the groups. And as you stated that you are tapping more and more schools and colleges to improve your footfalls in Bangalore park. So does it indicate that your revenue per visitor should continue to be lower in the coming quarters?

No. The focus is now equally on the walk-in as well as on the groups, but walk-in has been affected because of the slowdown. But then with the groups, we are able to push it because of the -- I mean, the [indiscernible] activities, somebody going and pushing the sale and also offer of the park. But the less -- in current quarter, we have already mentioned that the day spend will be much more and there will be more increase in the walk-in. So pricing will be -- [ RPV ] will be better as we get more of footfall from the walk-in.

Sir, and you have added 2 new rides in the Bangalore and 2 -- sorry, 1 ride in Bangalore, 2 new rides in Kochi and 2 in Hyderabad. So in quarter one, will it help you to get some incremental footfalls because Q1 is normally a better quarter for you? So I'm not expecting Q4 to be great in terms of footfalls, but in quarter 1, at least because of this new rides and if there is an improvement in sentiments, there should be some good footfalls for you?

Yes. It can happen because we are also -- in our communication also, we'll highlight that, I mean, these new rides are there. And in addition, for the inauguration of the new ride, we had a press conference and about 60 media in Bangalore, including prints and electronic media, they've covered that event, and then Kochi also we have done that. And Hyderabad in a small way. So there's already good communication going to the market about the new rides and we'll again repeat it in our current communication, and these hope to bring additional footfall.

Right. And this additional footfalls will incrementally get into your operating margins? Because this quarter, we have seen a dip in the margins and that can be because of the lower operating leverage. But once the footfall starts moving up and ticket revenue per visitor also moving up, you should expect even margins to go up?

Yes. Yes. Yes.

Or you will continue to spend heavily on advertisements and sales promotion until the level of footfalls you are targeting?

Yes. The day spend spending continue to be as per the budget and plan. But in fact, I mean, there is an unspent amount in the Q3. Q3 will be carried over to the Q4 and we will -- that money we'll spend. But we'll spend it within the budget.

Right. And one more observation, sir, that the nonticketing revenues, also, the growth where I've seen 2, 3 years back, the growth was in double digits. Now if you can see the nonticketing revenues growth has moderated to mid- to low single digits. So any particular reason for this?

No. That is because of the growth. When the growth means we -- it's all the school students and the college students and all that. Whereas the F&B consumption and the purchases and all that's relatively low because of their low budget. So the nonticket revenue will be showing significant growth when we have more of walk-ins. So this is the -- the sort of -- I mean, the groups coming in impacted the nonticket revenue.

Right. But are there any offers where you are giving tickets with -- where both ticket and non-F&B combine something -- a combo kind of offer that will attract the customers?

See, what we have told you is for the resorts. They want to stay and play that type of thing. So these are all happening to a different GST rates. The park is at 18% rate, and resort is at 12% and F&B is at 5%, okay? Bundling it, then we might have to charge at higher rates. So we try to keep it separated. But when all the groups or corporate comes, then we are able to give that quotation to them. And to be -- also, just to give a point, if you see the spend of our customer for this year, it is, compared to previous year, this year had been INR 260 per head and last year it was INR 251, the F&B and retail.

[Operator Instructions] The next question is from the line of Piyush Sharma from Metis Capital.

Just had a couple of questions. Firstly, in-state footfalls in Bangalore was what percentage of footfalls in this past quarter, please remind me what was the number last year?

Can you please repeat the question?

I was just asking in-state footfall in Bangalore [indiscernible] What I was asking was that if you look at Bangalore footfall this quarter versus last year, what was the percentage of in-state footfall? So that Karnataka's footfall as a percentage of overall Bangalore's footfall this quarter and the same number for the corresponding quarter last year?

Okay. The -- if you go through -- in the investor presentation, in the Page #10, if it is there, we can -- we have identified that statewide, we are doing the footfall numbers, okay? We will not announce separately for Bangalore alone, we will have it for the state. If you take for the state, it is about 70% is for the footfall of coming from Karnataka, balance 30% had come from other states.

Okay. And you said you don't do the specifically for Bangalore?

Because, see, we can't ask too many questions at the -- this database is created by asking a few questions at the ticket counter, okay? We can't make the questions too big. I mean, our questions [indiscernible]

And then secondly, I joined a bit late, did excess precipitation during the quarter play any material part in Bangalore's decline?

Did it?

Did the excess rainfall during this quarter play any material part in Bangalore's decline?

Let's see.

This quarter I don't think. But I mean, the weather has played a small part in the second quarter, but not in Q3.

The next question is from the line of Pankaj Kumar from Kotak Securities.

Sir, my question pertains to this Chennai park. So have you got any relaxation on this LBT issue that earlier like we had got like this 5-year exemption from 1st November, 2019. So any further relaxation on that thing?

It is awaited. In fact, have met the concerned authorities a couple of back. In fact, our President, Mr. Sivadas is in Chennai today and meeting the concerned authorities. They promised that it will come within a week.

And we also [ gave it ] to the Chief Minister.

Yes. We met the Minister. Arun, our MD, I mean the director, met the Chief Minister last time and he has also signed the paper, wherein our request have been agreed by the Chief Minister. Only, it has to come as [indiscernible]. We are awaiting the issue of [indiscernible] and they're promising that it will come within a week.

Okay. So I mean, if that is there, then that case, this LBT would be applicable post completion of architects?

Yes. Yes. LBT will be applicable. Probably they will give effect from 1st October. We have indicated that the construction will be over by the 31st of September, 30th of September, and probably they will make it effective for 1st of October 2021.

Okay. And sir...

That is what we have been promised. I think I mean certainly it should come.

Okay. That's good. And sir, have you seen any delay in approval? Because earlier in the last call, we said July '21, we expect the completion of the construction. Now we're saying September, so 2 months delay happened or so?

In fact, we are under single window because it's a gym project. But in spite of being in single window, we have been asked to take a different NOCs from fire, forest, PWD, pollution control and airport authority, and we would get the -- I mean approval from -- the NOC from fire last week, and others. We have also met the single window main officials and told them that this is -- should be -- we should not be asked to run around to different departments. But they said, we'll give your papers to the concerned department, we'll follow up and get it. So I don't think there'll be much further delay in getting the final approval.

Okay, okay. And sir, if you can give us some sense on the CapEx phasing? So of course, on the Chennai park in FY '20, '21 and '22?

Okay. The total outlay for Chennai park is about INR 365 crores. On the INR 365 crores, till today, we have spent about INR 108 crores. And the next 2.5 years, we are likely to spend about another INR 255 crores. And the major part of it we'll be doing in FY '20, '21. That is in April to March period, [ Then ] construction, the rides and the advances for equipment have to be paid.

Okay. And how much we are designing, or say, building in-house the rides that we normally do in other parks we had done in the past? So here, what are the plans? Like, how much would be imported and the in-house thing?

So we have imported some part of the rides already, and these rides have to be brought to the condition and the refurbishment of some rides ought to be done, which is being done in-house by our technical team. This [ subpart from ] new rides we'll be sourcing it.

Okay. And sir, on this Bangalore thing, coming back to that, so we have, like, seen last 2, 3 years, of course, there was service tax issue and all. But we've seen like, our footfall is ranging around 1 million so, and the best we have seen in FY '13, it was 1.12 -- sorry, FY '15 when it was 1.25 million. So can we say, like, we are -- this park has matured in terms of footfall or is there any further scope to achieve at the previous level, which we had achieved in FY '15?

We cannot say that the park is mature because the -- in spite of being in operation in Bangalore for about 13 years, I mean, yes, 13 years, 14 years, still not have covered even 25% of our target crowd. So there are a lot of people, I mean, who are yet to come and visit our park, so we can't say. But then this irrational movement of footfall is on account as I've mentioned to you, on account of certain events, either wages slow down or the taxation issue or something like or climatic conditions and all that. But we have a lot of untapped potential, and we are now segmenting -- I mean, segmented the approach, marketing approach we are undertaking. I think, definitely, we can push the medium target is reaching the peak level, which we had achieved 1.25 million. And thereafter, we can have a double-digit growth in the years to come.

Okay. And apart from marketing efforts, are we doing more investment? Are we going to do more investment in the park?

See, I just want to add one more statistics before answering it. '17, '18, we recorded 9.64 lakhs footfall. But '18, '19, we recorded 10.57 lakhs. Okay, so there was a growth of over 1 lakh in our footfall, okay? So this year has been -- overall, the sentiments have been different. So we should not take this year as a base, and we can discuss, number one. Number two, coming to the -- bringing fresh ideas and fresh rides in Bangalore park, yes, we might be looking at adding a couple of 1 or 2 rides. But no major changes in infrastructure or investment [ has been decided ].

The next question is from the line of Hardick Bora from Union Mutual Fund.

The question is on Odisha park. What is the optimum number of footfall that we can see in that park that you are projecting?

We have done a feasibility study for the -- market feasibility study for the Odisha park. And we are -- the outcome of the feasibility study, it's [ encouraging ] for us to go ahead. And we are talking about, on the peak season, it can be up to 3,000. At a nonpeak season, it can be about 1,000, 1,500 is what we have suggested, which is in the bandwidth of our scale. So we are also looking at about 5 lakhs, 6 lakhs to start with.

Five lakhs, 6 lakhs to start with, but on an -- so that is the optimum number also that this park can do, 5 lakh to 6 lakhs?

No. That's -- the optimal number, if you take our Bangalore park or Kochi's park, the capacity, we can go even up to 13,000, 14,000 numbers, okay? So -- but we might do about 4,000, 5,000 on some days. And so a few days, we have touched even 13,000 numbers, okay? The optimal number there is -- can be even up to 10 lakhs we can take up. What we are building can take up to 10 lakhs footfall. See, this infrastructure have to be there -- these are all horizontal infrastructure. So to -- just to help you out, see, if you are to put more [indiscernible] rides in the [indiscernible] trade, okay? You can't just lead the cable or lead the groundwork only to that level. You have to level everything together. The initial investments of bringing the place to the park requirement is very important. Then you will be able to add price at different places, which is also required.

The next question is from the line Viraj Kacharia from Securities Investment.

Yes. I was just coming on to the Chennai park. By when -- I mean, based on the commentary on the LBT we can repeat again?

So we have got the government order for LBT effective from 1st November, 2019, till 5 years. There's no applicability of LBT. But we have told them that there's going to be about 18 to 24-month construction period. And accordingly, we have asked them to raise the LBT from 1st October, 2021 to 1st November, 2019, for a period of 5 years.

Okay. So we're still waiting to hear from them?

Yes. We have [indiscernible] them -- it has been positive. The government has been positive on this. It's only a matter of documentation, which is pending.

Okay. And Chennai park, once it's commercialized, what kind of capacity it can take on optimum level?

It will be similar to the Bangalore or Hyderabad park. It will be -- it can take about 13,000 footfall easy.

Okay. Understood. And for the Odisha, what is the land CapEx? From the land part, I understand there's not much of a CapEx. But otherwise, what is the kind of CapEx?

We are in the range INR 100 crores to INR 110 crore is what we are looking at.

And that will be spread over?

That will be spread over about 15 to 18 months. Our construction period is about 18 months.

So this should get commissioned by FY '22 end, right?

Yes.

Okay. Got it.

'22, '23.

'22 and...

'22, yes.

[Operator Instructions] The next question is from the line of [indiscernible] from ICICI Securities.

Yes. Sir, if you could just tell us, how has been the response to both our initiatives on Wonderpass and WonderClub and how it has helped our realizations and footfalls both?

Okay. See, the WonderClub is a part where once you subscribe, okay, you can get a family for 3 years, okay, which is highly discounted, and they can enjoy both the park and the resort. And this adds up to about 18,500 for a card for a 2 member who can receive in a period of 3 years, once in a year, okay? This is how we have WonderClub. And we also have pass for the -- WonderClub for the family, where the denomination is higher, where 4 people, 2 adults and 2 kids, they come in, the denomination is higher. In case of Wonderpass, Wonderpass is given to improve our, it's more of a loyalty program, given to the groups and where the number of people, which is about more than 4 or 10 people, we gave this Wonderpass, which enables them to take this [indiscernible] to the park entry and the F&B in the next [ visit ].

The next question is from the line of [ Deepak Malhotra ] from [ TPG Consultancy ].

This question is on your [indiscernible] number. Although you explained earlier on the call that there are key reasons for the debt. And going forward, what are the pressure really in to take that -- when does it see really repeat of the performance? Because if we see over the last 3 to 5 years, once in a while, you do have -- where we see some kind of adjust happening in...

Sir, we're not able to hear you clearly.

Hello?

Yes. Better now.

Yes. My question was that in the past also we have had situations wherein -- like this time the dip, which we have seen, is very, very significant in the Bangalore facility. So what steps you think you could take that we don't have a repeat of that in the future.

Now basically, as I mentioned, more of media spend and communication that we are doing in the current quarter. And we are also analyzing whether we need to reposition the Bangalore park. What are the other customer offerings, which can attract some in addition to the rides, so that's also -- I mean, we are -- I mean, brainstorming is going on. And so we are -- I mean, whether we need to position it as a premium brand or a common brand for the common people, all these discussions are going on. Plus, the digital push, which, I mean, the -- that is also -- we have -- right now digital push is there, but we are going to accelerate the digital push and because Bangalore responds better to the digital media. So all these steps we are going to take. And definitely, we have a couple of [indiscernible] ourselves.

The other question is, although you did answer again on the coronavirus, but in the past, also, we had the bird flu and going even back to SARS and things like that. And now we have the CA and we have some of the other such similar protest. So what was the experience in the past, whenever such things have happened and how has been the performance then?

The [ current ] -- I mean -- the virus, I mean, it's certainly in the social media, but we've not seen any impact of that in our parks. I mean I don't think it has happened to the footfall. And even CA, also, I mean, except 1 day of [indiscernible] Kerala, we have not seen even on that day, we could see about 1,000 footfall. And we have not seen any negative impact on our footfall.

Okay. Unless it continues in quarter 1. I mean if it goes on till then, then clearly do you think it could have an impact?

Yes. These are all -- I mean, even beyond our control, and in case it accelerates, it becomes grave and it becomes real, probably we'll definitely see an impact.

Okay. Fine. One final question. While you mentioned that you'll be taking about INR 100 crore of short-term debt for the Chennai project. I mean what will be the group's policy on the debt, especially, because in the past, you have always financed everything through cash accruals. And the group never really had any serious debt on the balance sheet ever.

Yes. The group's policy to the extent possible to continue to be a needless company, 0 borrowing company. But since right now, we are after a long time in -- after our bank -- I mean after our Hyderabad park, we are going for a major expansion, which is Chennai, which is going to be about INR 350 crores plus. And simultaneously, more or less simultaneously, we are going for [indiscernible] destination, we need to go for, a small debt. And according to our -- the balance sheet, we can [ deleverage ] even [ INR 500]crores. We are only going for a debt of about INR 100 crore which I mean, we'll be able to repay in a short time because of our cash accruals. No. I don't think it's a long-term -- I mean, for the company to go for borrowings, but then we want to continue to be a 0 debt company. But then since 2 projects are coming more or less parallelly, so we need to go for a small debt for a temporary period.

Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Adhidev Chattopadhyay for his closing comments.

Yes. On behalf of ICICI Securities, I'd like to thank everyone for joining us on the call today and also the management for taking the time to answer all the questions here. Thank you.

Thank you very much.

Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.