Brands
Q1-2016: Adlabs revenue gets boost as theme park footfalls triple
BENGALURU: Adlabs Entertainment Limited (Adlabs) reported almost three times (2.98 times) the footfalls at its two theme parks Adlabs Imagica and Adlabs Aquamagica-Water Park in the quarter ended 30 June, 2015 (Q1-2016) at 5.392 lakh as compared to the 1.81 lakh in Q1-2015.
Consequently, the company’s operating revenue (total income from operations, TIO) was 2.34 times in this quarter at Rs 85.01 crore as compared to the Rs 36.37 crore in Q1-2015 and 72 per cent more than the Rs 49.43 crore in Q4-2015.
Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore
(2) All numbers in this report are standalone unless stated otherwise.
Four segments namely ticket sales, food and beverages (F&B); merchandise; and other operations contribute to Adlabs revenue.
The largest segment by far in terms of percentage of TIO, ticket sales, reported an operating profit of Rs 1.05 crore in Q1-2016 as compared to a y-o-y operating loss of Rs 16.13 crore in Q1-2015 and a q-o-q operating loss of Rs 18.89 crore in Q4-2015. All other segments also showed healthy growth and reported operating profits during the current quarter.
The company’s loss in Q1-2016 has almost halved at Rs 14.81 crore as compared to the loss of Rs 28.67 crore in the corresponding quarter of last year and was less than half the Rs 31.16 crore in Q4-2015.
EBIDTA in Q1-2016 was positive Rs 24.74 crore (29.1 per cent margin) as compared to the negative EBIDTA of Rs 2.25 crore in Q1-2015 and the positive EBIDTA of Rs 3.78 crore (7.7 per cent margin) in Q4-2015. Adlabs EBIDTA in the current quarter has already surpassed the EBIDTA of Rs 20.51 crore for FY-2015.
Segment details
Ticket Sales
Ticket sales revenue more than doubled (2.21 times) in Q1-2016 at Rs 61.91 crore (72.8 per cent of TIO) as compared to the Rs 28.05 crore (77.1 per cent of TIO) in the corresponding year ago quarter and was 76.1 per cent more than the Rs 35.16 crore (71.1 per cent of TIO) in the immediate trailing quarter. Results of this segment have been mentioned above.
Food & Beverages (F&B)
Adlabs F&B segment revenue more than doubled (2.4 times) in Q1-2016 at Rs 13.28 crore (15.6 per cent of TIO) as compared to the Rs 5.59 crore (15.4 per cent of TIO) in Q1-2015 and was 53.9 per cent more than the Rs 8.63 crore (17.5 per cent of TIO) in Q4-2015.
F&B reported operating profit of Rs 3.83 crore in Q1-2016 as compared to an operating loss of Rs 0.13 crore in Q1-2015 and an operating profit of Rs 1.72 crore in the immediate trailing quarter.
Merchandise
Merchandise segment reported more than triple (3.3 times) revenue at Rs 7.31 crore (8.6 per cent of TIO) in Q1-2016 as compared to the Rs 2.27 crore (6.2 per cent of TIO) in Q1-2015 and was 66.4 per cent more than the Rs 4.39 crore (8.9 per cent of TIO) in Q4-2015.
The segment reported an operating profit of Rs 1.07 crore in Q1-2016 as compared to an operating loss of Rs 0.18 crore in Q1-2015 and an operating loss of Rs 0.14 crore in the prior quarter Q4-2015.
Other Operations
Other operations’ revenue more than quintupled (5.4 times) in Q1-2016 at Rs 2.51 crore as compared to the Rs 0.46 crore in Q1-2015 and was more than double (2.02 times) the Rs 1.24 crore in Q4-2015.
The segment reported an operating profit of Rs 0.09 crore as compared to an operating loss of Rs 0.97 crore in Q1-2015 and an operating loss of Rs 0.03 crore in Q4-2015.
Let us look at the other numbers reported by Adlabs
The company’s total expenditure in the current quarter at Rs 81.05 crore (95.3 per cent of TIO) was 47.4 per cent more than the Rs 54.97 crore (151.2 per cent of TIO) in Q1-2015 and was 18.7 per cent more than the Rs 62.87 crore (138.1 per cent of TIO).
The company’s advertising costs in Q1-2016 almost doubled (up 97.6 per cent) at Rs 19.13 crore (22.5 per cent of TIO) as compared to the Rs 9.68 crore (26.6 per cent of TIO) in Q1-2015 and was 60.4 per cent more than the Rs 11.93 crore (24.1 per cent of TIO) in the previous quarter.
Other expense in Q1-2016 declined 8.5 per cent to Rs 6.15 crore (7.2 per cent of TIO) as compared to the Rs 6.72 crore (18.5 per cent of TIO) in the corresponding year ago quarter and declined 39.2 per cent as compared to the Rs 10.12 crore (20.5 per cent of TIO) in the immediate trailing quarter.
Employee Benefits Expense in Q1-2016 at Rs 15.47 crore (18.2 per cent of TIO) was 40.3 per cent more than the Rs 11.03 crore (30.3 per cent of TIO) in Q1-2015 and was 18.7 per cent more than the Rs 13.04 crore (26.4 per cent of TIO) in Q4-2015.
Company Speak
Adlabs CEO Kapil Bagal said, “As envisaged the theme park and the waterpark are complimenting each other and working extremely well as a combination. Imagica is focused on attracting children, families, groups and corporate and Aquamagica is focused on attracting the youth and college segments and together both parks covering all segments of customers. We are seeing great response from our promotional marketing activities and new properties of Happy Tuesdays and Lazy Sundays. All our sales channels activation is looking promising with a multi-city expansion of sales agents with expansion of our reach across India. Further, we have pre-paid approximately Rs 250 crore of debt with the funds in our IPO and we now have comfortable debt to equity ratio and our interest outgo has also reduced.”
“Our hotel Novotel Imagica Khopoli is on the verge of launching in August and we are already seeing encouraging advance bookings by corporate for their MICE and social events. Once the hotel is operational, we will become a complete integrated holiday destination in India,” he added.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
