Q4 20/21

Jun 9, 2021

Ladies and gentlemen, good day and welcome to the Wonderla Holidays Q4 FY 2021 results conference call hosted by ICICI Securities Limited. I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities Limited. Thank you, and over to you, sir. Yeah. Good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone today on the call. Today from the management of Wonderla, we have with us Mr. Arun Chittilappilly, the Managing Director, and Mr. Satheesh Seshadri, the Chief Financial Officer. I would now like to hand over the call to the management for their opening remarks. Thank you. Good evening, everyone. This is Arun Chittilappilly. We welcome you to this conference call to discuss the fourth quarter results of the financial year 2021. Hope everyone continues to be safe, and I would like to start off by appreciating the relentless effort of various COVID warriors who made sure that people are safe during this pandemic. After reopening Bangalore and Kochi parks in November and December respectively, the calendar year 2021 started off on a good note for us as Hyderabad park also resumed operations on 9 January. All three of our parks were operational after a gap of more than seven months. I would like to emphasize that our team was ready to immediately reopen the parks once the necessary clearances were received from the government. The team continues to excel with their dedication and resilience as we found innovative ways to safely entertain nearly 4 lakh guests. Post-unlock, Wonderla continued to be a preferred destination for outdoor entertainment in our host city. We witnessed substantial demand once our parks resumed operations. In January, our parks were operational only from Thursday to Sunday, which was further increased to Wednesday to Sunday from February. In the month of March, all the parks were open all the days of the week. Our attendance consistently improved every month since we first reopened the parks. Wonderla is also the first theme park chain in the country to be awarded the highly coveted COV-Safe certification by Bureau Veritas. Wonderla Bangalore and Kochi certified with diamond certification. Hyderabad Park has secured a platinum certification. We introduced industry-leading safety standards and protocols to protect both our employees and our guests who come to have a memorable day with us. This includes encouraging online reservation system for admission, touchless temperature and security screening, contactless transactions, and enhanced sanitization. Our outdoor venues have tremendous amount of open space, and our parks are naturally conducive to social distancing. Over the decades, Wonderla has faced many challenges, but FY 2021 was the toughest challenge faced, not just by Wonderla, but the industry and the world at large. The results for the quarter and full year may not be comparable to the prior year due to the pandemic limitations. Coming to our performance for Q4 FY2021, our focus on digital marketing and innovative approach, including influencer activities and PR campaigns, yielded good results. We recorded footfalls of 3.1 lakh visitors across all parks, which is more than 1 lakh per month. We also introduced innovative F&B and retail offerings in theme parks during the quarter. On a YOY basis, our footfalls are at 77% of pre-pandemic Q4. We registered a gross revenue of INR 347.9 million, clocking a recovery of 77% of the INR 449.1 million revenue registered in Q4 FY20. We are also EBITDA positive for Q4 FY21. The company's balance sheet continues to be debt-free and has ample liquidity of INR 930 million. Even though the road is a bit bad for us due to the second wave, and we closed our parks in April, our team is motivated, and we are trying to put our best foot forward to drive the company to scale new heights. We have identified high performance and rewarded them with increments. Additionally, we are also working on vaccination efforts for all our staff. We continue to focus on sustainable value creation from our resilient business. Despite the recent lockdown, we are optimistic that it will generate a widespread desire that will help us drive attendance in the coming quarters. We are looking forward to put the worst of the pandemic behind us and delight our guests in our parks as and when the time is appropriate. We thank you for your continued support and remain confident in emerging stronger as our strategic plans remain intact. We can now proceed to Q&A. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants to ask a question, you may press star and one now. The first question is from the line of Kunal Sharma from Perfect Research. Please go ahead. Hi. Good evening, sir. I have a few questions, I'm listing them together. The first, when do you see India open up like the U.S., where the post-sufficient vaccination, even masks are not required? The second, sir, along with the opening of bigger parks, shouldn't we also think indoor entertainment option in malls due to two reasons? The first is setting up this big park in such a painful time-consuming process and slow our growth. Second reason is that city people would be able to use in the city entertainment option more regularly versus coming once and twice toward a big park. Third question, any learning from running Wonder Nursery and the Wonder Kitchen, which could help us scale up our business later? Lastly. Please limit your questions to number two because I will not be able to answer all of them otherwise. There's a last question. Is there any opportunity for inorganic acquisition of the park in India? Thank you. Sorry, I didn't hear the last one. The last one is there any opportunity we see of inorganic acquisitions of other parks in India? Your first question was, when do we see the pandemic kind of receding? Yeah. That will only happen if at least 50% of the population is vaccinated, as you all may already be aware. In a large country like India, it could take five months, it could take six months, it could take one year, it could take two years. It's all up to the government. Let's hope for the best. They are saying that we will finish vaccination by December, I highly doubt it. Maybe a year is what I think. Second question, what is it? Could you repeat the second question? Shouldn't we also think about the indoor entertainment? Okay, indoor entertainment. Indoor entertainment is a different format. It does not come under the amusement park business. It's a completely different business, and the entry barrier for something like that is relatively low. Like you rightly said, building a large park is always much more costly and time-consuming. Our expertise is in the large format parks, so we don't want to get into the small park business because I don't think there are enough margins, and I don't think there are any players who have been really successful at it. I'm not really bullish. I mean, for me, I don't think it makes sense for this company. Third question. The last question was? Sorry, could you repeat your last one? I forgot. There's been too many questions. Yeah. Limit the questions to number 2 next. Two questions, okay. Next time. Okay. Sure. Any learning from the running of Wonder Nursery and the Wonder Kitchen? Wonder Nursery and Wonder Kitchen and all was only to engage our staff during the pandemic last year because we had an extended lockdown. Once we recovered from the lockdown and we were in a position to open the parks, we found it difficult to run both the businesses together. Also running a takeaway food outlet had its own challenges because it's a very low margin, high volume business, and we couldn't recruit more staff to grow that business. At the same time, we were also trying to reopen the parks. We had to take a call on which we obviously prioritized reopening of our parks and getting a good fall ramp up over the other businesses. Those continue to be there only as We are not doing the Wonder Kitchen anymore, but Wonder Garden continues to be there, but it's a very low card, very small operation. We could come back and look at it again. There is a market opportunity, especially in the kitchen business. Right now, I think because we are constantly going in and out of lockdowns, we don't have the bandwidth to run both. Hope that answers. Okay. Your question is answered? Actually, last one is remaining. There is like opportunity we see the inorganic acquisition over the past- We are not looking at any inorganic acquisitions right now. Okay. Fine. Thank you. Thank you. The next question is from the line of Rajesh Ranganathan from Doric Capital. Please go ahead. Hi. Thanks for the opportunity. It's a tough time, so obviously, you're doing the best you can. Could you please give us an update on Chennai project? What is the current thought process around that? Secondly, we've tried different businesses, but within our own parks business, how have we used the time that we've had in terms of downtime to make it better when things open up? I think for us, the downtime is mostly we're using it for strategizing and trying to improve our businesses when we reopen, and I think that has helped us a lot, especially at the local during the last quarter. We have also had fundamental shifts in our strategy in terms of how we market the parks to our visitors. That has gone through a huge change, and we are much more digitally heavy right now. A lot of that work is still in progress, so it's still not a finished product. Maybe it will take us another year to change our marketing and customer experience to a fully digital system. We are still working on it, but that kind of works are going on. We are also revamping some of our offerings in terms of F&B outlets and things like that. Small upgradation work and those kind of things are going on right now. Are you saying that, let's say, this three months or eight months that we've had as a downtime, there isn't any significant project in terms of upskilling of employees or systems or IT, which normally we are not able to do in a running park? That you can wow your clients when you walk in next time. Yeah, that's what I said, we are working towards that. It's more like a digital transformation in the company in that sense. Yeah, it's still early days. It will probably take us a year or two to finish a substantial part of it. Chennai, if you don't mind. Chennai is put on hold because we are not able to start work on it. It has been put on hold for at least till the end of this financial year. Do you have the land with us or is that not there? Yeah. It is land and some land development. Some basic work is going on, but we are not building the park as of right now. Why is that? Is it because of lack of availability of labor or what's the reason? Yeah, we don't have labor. We are not able to move people there. We have some outstanding disputes with the government in terms of tax holidays and things like that. Those kind of things have to be sorted. We will announce whenever it's ready, though. I don't see anything happening for the remainder of this year. Okay. This tax dispute, how serious is it? How long is it likely to take to resolve? That's one of the growth drivers for you when things open up, if you're able to resolve. Yeah. I mean, we asked for a tax holiday exemption from the local body tax in Chennai. I don't know if you're aware, but Tamil Nadu is the only state which levies an extra tax on tickets. We will not be able to build a large format park and run it with that tax in place. They have categorically agreed the previous government, but now the government has changed, so we'll have to work again and see how. We don't know how long it will take. Okay. From point of view of, let's say, pre-COVID, we had a certain sales and a certain EBITDA. Let's say things do open up and we reach 77% in fourth quarter, and maybe you can also comment on why when other businesses were able to reach 100%, maybe certain peculiarities why we were not able to. Suppose we do reach 70% at some point, is that be similar or better or lower? What do you think? It will be better or at least the same as before, once the COVID pandemic. The reason why we had only 77% footfall is because we were not allowed to open every day of the week initially when we opened. Only one month out of the three months, that is only March, all three parks were open all days of the week. The other two months, some days we were open, some days we were not open because we had to limit the crowd also, right? Yeah. Yeah. Do you have a sense of? Sorry. Okay, thanks. Thank you. The next question is from the line of Farimal Mithani from Credential Investment. Please go ahead. Hello, can you hear me? Yes. Hello. Thank you for the opportunity. This is the first time I'm joining your call. First, is it safe to assume that last year was the worst year in the company's history going forward? The second question is in terms of footfall- Sorry, can you repeat your first question? I couldn't hear you properly. Sir, there's a disturbance coming from your line, sir. Now can you hear me properly, ma'am? Hello. Yeah, still disturbed, but I can hear you. Disturbance is there, but if you could mute your line, sir. Yeah. Is it clear now? Yeah. Yes. Yeah. Is it safe to assume that last year was the worst year in the company's history in terms of financial performance-wise? Yeah, it is one of the worst, yeah. Yeah. It will be the base for the years going ahead, right? In terms of since the pandemic, it was the worst year. We are assuming that way, right? Yeah. Second thing, sorry, this footfall of 3.1 lakh, which you achieved in this less time of, I think you had your operations less than three months and during the pandemic restrictions and all that. Both India and China critical vaccination drive. Do you see this number to be top up your prior expectations also? Actually, I think INR 3.11 lakhs is a pretty good number. In fact, it kind of beats what we thought we would achieve also. We had pretty good footfalls in all the three parks. I think there is a lot of latent demand. People are wanting to go out, obviously because of the pandemic, there is a lot of restriction, lockdowns, all those things. Once the lockdowns, the restrictions, all those things ease out, assuming that at least 60% of the total population gets vaccinated, which you can already see in other countries happening now, I think the demand will be coming back strongly is what we think. That is what we are seeing from other parks in other countries as well. Status of the park as of lockdown. Sorry, I can't hear you. What is the status of the park? Are they remaining lockdown or they're partially opening of the parks? They're all lockdown. All three of our parks are in a lockdown. Okay. Sir, this footfall, was it because of the coupon discounts or anything, or it was just the latent demand which was there and people wanted to travel? I think it's mostly because of latent demand, but we also had some discounts and some offerings and things like that. Mostly not discounts, because our ARPU is also better than last quarter. Sir, last question. If I'm seeing your company for next three, four years, in terms of how do you see yourselves in terms of the coming years? I won't quote you to it. I just want to understand the business. Yeah, I think once the pandemic recedes, I think we will slowly get back onto our growth path again in terms of adding new locations to our portfolio, things like that. We're already working on it. Like for example, we have Chennai and we have another project we have signed in Bhubaneswar, like a small version of the park with the government there. Again, because of the pandemic, we've not been able to move it. We have a couple more opportunities, one from Gujarat and there's another opportunity from Colombo in Sri Lanka as well. We are evaluating all these options. Whenever the time is right, we will start working on these projects. Also our existing parks also, we are upgrading them slowly. Once we reopen, I think we'll be able to give our visitors a better experience. Sir, ticket price range or like. Sorry, I think you've run out of your question time. Sir, if you can just comment because I'm just talking for the first time, and if you can give us the time, that's the thing. If you don't mind, I'll go ahead, sir. Is that a problem? We are being told there are only two questions per participant. Okay. Thank you. Thank you. The next question is from the line of Deepa Mehta from NHS Ventures. Please go ahead. Hello. Yes. Yeah, thank you for the opportunity. I only have one question. Recently Gujarat government announced various incentives such as reduced electricity bills and property tax exemptions for various multiplexes. Can we expect something similar for park industry? I think the association of parks are actively talking to different bodies. I think Gujarat has always been very pro-industry, and they've been giving some of those things, but I'm not seeing it as a countrywide initiative for other industries also. We are trying, we are hopeful that some kind of exemptions or tax breaks, et cetera, might happen, but too early to comment. Can we expect something similar in the other states as well? Not sure. We are working on it, but at this point we can't comment on it. Okay. Thank you. Thank you. We would like to remind participants that you may press star one to ask a question. The next question is from the line of Meeta Gani from PS Associates. Please go ahead. Hello. I have one question. How the current initiative of 50% off is gaining traction? How's the response over there? That's a new offer that we have just given because we are currently locked down, and we are not able to open the parks, but we are selling the tickets for a future date. It's a limited time offer, and I think we had really good response. I think we sold about 7,000 odd tickets in about a week. It's not a bad thing. Okay. Apart Chennai, are you looking at any other location? I mean, sorry, sir, looking at other location currently? We are looking at other states, like I told you, I mentioned in the last answer. We are looking at a few opportunities in other states like Gujarat, Odisha, and also we have an opportunity which has come up in Colombo, in Sri Lanka as well. We are evaluating few opportunities. Okay. Thank you. Thanks for your time. Thank you. Thank you. Participants to ask a question, you may press star 1 now. The next question is from the line of Nitin Verma from Aurum Capital. Please go ahead. Thank you for the opportunity. I've just one question regarding Bhubaneswar, Odisha. The board is approved for setting up this park. You mentioned that you've not worked out the details about it, but if something is there in terms of kind of investment that you are looking for, because you mentioned that's going to be smaller format. What is the kind of investment that you're looking for this, and what will be the timeline once the things open up? It's very early stage. We want to do a very small format one, so it will be significantly lower investment compared to our existing parks. Also for us, Odisha seems like a smaller market as well. We are trying to tailor-make something, working with the government there to see whether we can do a small park. They have been very supportive. They've actually been very proactive in terms of helping us with the land and approvals and all those things. Once the plans are finalized, we will update everyone about it. Right now it's still in the drawing board. Okay. Thank you so much. Thank you. The next question is from the line of Manoj Dua, an individual investor. Please go ahead. Good afternoon, sir. When you look for a new opportunity like Colombo or Hyderabad, what are the parameters you look into? What are the conditions you think that can satisfy for opening of a new venture? Thank you. We look at a few things. One is the area, whether there's a sufficient catchment area in terms of market size. We also look at whether the business can operate 365 days or is it highly seasonal, depending on weather conditions. We also look at how proactive the government is in the state or area, and how helpful they are. We also look at how close are they to our existing project, because we don't want to build two parks which are very close to each other because they may cannibalize each other's sales. There are a few parameters like that we look at. Also infrastructure, sir. Water, electricity, connectivity. Road connectivity, water. Basics like that as well, yes. Now, if we want to see your company after five, 10 years, we know the growth parameters are opening new parks around per capita of India. There are more and more people are coming in. More value addition of merchandise, maybe opening of resorts in our own parks. If we are not able to open new parks at the pace that we think, which has happened in the past, how far we can still grow from our own parks? Can you give us some guideline? New parks are growing slowly. I mean, all are conditions in the park, Mumbai, Delhi, and Bangalore are not able to open new parks. How far we can grow from our these three parks in future? I think our existing parks are still not saturated in terms of footfalls, that's something that we are looking at very seriously. Even if we don't add new parks, I think there is sufficient headroom for us to grow in our native markets. For example, Hyderabad, we still haven't reached 1 million footfalls. Kochi, we used to have 1 million-plus footfalls, then it has dropped in the last 2, 3 years. We need to fix that. There are some of those challenges we need to address as well. Definitely there is scope for growth in our home market is what we feel. Because our parks, even if we have 1 million footfalls, it's still a very small percentage of the total addressable population of each of those cities. Okay. Thank you. Best of luck. Thank you. The next question is from the line of Pawan from Lacuna Capital. Please go ahead. Hi, thanks for taking my question. Most of my questions were answered, but just one additional one is, what's the capacity or you just mentioned that, for example, Hyderabad has 1 million kind of capacity. What's the kind of operating capacity that we can think about when we look at the business? Roughly, I think we can accommodate about 5,000-6,000 visitors in each of our parks per day. You multiply that by 365, you'll get the theoretical maximum capacity. Obviously, we may not hit that number. About 8,000 to 10,000 is the park capacity. We worked on a 50% capacity during the pandemic, which is 5,000 for the Bangalore Kochi Park and 4,000 for Hyderabad Park. We can go up to 8,000-10,000 capacity. Okay. I'm saying that's not sustainable every day to have that capacity. It is not sustainable every day. Right. You have more visitors on the weekend versus the weekdays. On average, that could be about 50%. I would say you can take a 6,000 number per day, and then you can multiply that by 365, you'll get that. Okay. Sounds good. Second was, one of the previous participants asked about what do you look for in kind of expansion projects, or how do you think about capital allocation. When you're looking at these growth projects, what are the financial parameters you're looking for? Like what are the ROE or those kind of metrics are you looking at? We don't look at the ROE calculations. Are a by-product of what we have achieved because it's not something that we typically want each of our investments to kind of pay back within seven, eight years. That's the way we look at it. Yeah, ROE calculation. Satish may be able to answer this better. Yeah. We look at the ROCE, we look at the payback, and we look at also the dim. First one is there a demand there? The business is the footfall is one thing. We look at the ROCE and the payback also on this. These are all long gestation projects, whatever we have taken till now, because the investment size is INR 300 crores, INR 330 crores for Chennai project, for example. Okay? It has its own curve. Okay. When you talk about the Orissa project, the investments could be slightly lesser there. We look into various factors, but you can't have an ROC ROI in the initial years. You build up over the period, you have a better return. I think it will be harder in the initial years and then it'll get better as the footfalls improve and the cost of the park comes down. Let me rephrase the question. 7-8 years is the payback period and breakeven you target about three years? Is that what you said, like your earlier projects? Yeah. Hyderabad Park project, for example, we had a breakeven in three years. EBITDA positive. Okay. Got it. Thank you. Thank you. The next question is from the line of Anuj from Emkay Investments. Go ahead. Thank you for this opportunity. My first question is, I think the Gujarat opportunity, I think has been on Emkay for some time but we have not taken any- Sorry, Mr. Anuj. There's a disturbance coming from your line. Request you to mute your line so that management can answer your question. Yeah. I'm not just completing my question. Just on Gujarat, any particular reason why we are delaying it or we have too much our hands are full at the moment? That's one question number one. We have just been talking to them, and there has been interest from the Ahmedabad government for us to set up a park. It is still early days. We are still in the negotiating table on what to do, how to do it. These things are like that. It takes time for us to finalize on a project. Sure. All right. My second question is Colombo. Suddenly this name I've heard for the first time. Is it that we have got an invitation or any more specifics on the Colombo opportunity? Right now, it's a new invitation that we got to set up and run a park there. Once we have more clarity on that, we will definitely keep all of you. I'm just saying, I've said it because a lot of people do keep asking us to invest in new geographies and build parks or take over existing parks. For example, the Colombo opportunity is for us to take over a semi-finished park and to complete it and then run it. Like that, there are different opportunities which keep coming from time to time, we will look at the suitability for our brand, and whether it goes with our ethos, and then we take a decision on that. Sure. The management contract type, sir. Sorry. The management contract types. Sure. The third and my final question is, we have all three existing parks in a similar model. Bhubaneswar is slightly different in terms of lease land, but these are the two or three models we are looking at or beyond that we are exploring. Management contract is something we have explored but not satisfied till now. Just are these two or three models around or we have something more in our- I think mostly we would like to build our own parks. That's the ideal situation, but that is very time-consuming and slow in a country like India. The next best would be to take over and run other parks for a management contract. That also we are exploring. We have a few opportunities. In fact, we have at least four or five opportunities like that in India. We have this opportunity which come from Colombo as well and many other countries. We are just restricting ourselves to the Indian subcontinent for now. Okay. If you permit me one more. What is the key reason we are being slow in taking off? I think these opportunities in management contract have been there for some time. Is it the financial consideration or is it our inability to visualize how parks will be? I mean, what is delaying? I understand one in Bombay, which you have clearly said is out of consideration, but others, what could be the reasons? Different parks have different issues because usually when they come to us, maybe it's a half-finished project, maybe some projects have run out of money, maybe some projects were planned, but nobody, it never took off. There are various reasons for why various projects don't take off properly. We have to assess it and then see whether we want to jump into it. We usually take our own time with it because we don't want to hurry into something like this because it's a long-term commitment. Sure. Really appreciate. Thank you for the answers. Yeah. Thank you. We would like to remind participants that you may press star one to ask a question. The next question is from the line of Saurabh Arora. Please go ahead. Good evening, sir. I have a few questions. Number one is, most of the corporate companies have extended work from home culture for their employees, and they are saying it a great opportunity for post-COVID as well. How do you think this will affect our business in Bangalore and Hyderabad, as these are top locations for such corporate companies? I think work from home, it's here to stay in some form. Even I'm working from home for the last year or so. I think there is some comfort in that, but at the same time, I think that cannot go on forever. Maybe for a tech-related company, it makes more sense to do it. A company like ours, we have parks and we run them, and it's a physical infrastructure. Remote working may not. I think it will be better for us because it will definitely decongest some of our cities. Traffic times will improve, and I think people will find it easier to commute, which is always a good thing for a company like us. Ease of commute is one of the main factors that decide how many people come to our parks. Yeah, employees of corporate companies, private tech companies, may be huge customer base for outdoor too, if they are living in Hyderabad. Just because they work from home doesn't mean that they never go out of their house, right? Yeah, they will work from other states, in their hometowns, like Uttar Pradesh, Delhi. I don't see the populations of our cities going down. Long as our cities are thriving and the populations of our cities are growing, I think we'll also be growing. My second question is, in last conference you discussed about salary cuts as cost-cutting measure. I want to ask what was the cut in case of directors? What's their remuneration and commissions directors received in FY 2021? You will see more of it on the annual report, please. Hello, sorry. Those disclosures, you will see more of it in annual reports. Okay. Sure. Thank you. Okay. The next question is from the line of Rajesh Ranganathan from Doric Capital. Please go ahead. Thanks for this opportunity again. Through this pandemic, and even before that, things were slow in India. We've lost some top management, I guess, some voluntarily, some otherwise. What's our plan going ahead in terms of how do we recruit and retain talent given how difficult the industry is right now? I think the difficulty in the industry is there everywhere right now, and I don't think it's unique to our industry. I think it's there for, I would say at least 40%, 50% of the businesses in India or anywhere in the world suffering right now. It's not unique to us. I don't think it's a perennial problem, it's going to go away at some point. We don't know when. We are just getting ready for that day when we feel like we can open the parks and welcome people. Whatever changes and improvements to our products and services that we can do, we are doing it now. That's the way we look at it. We continue to hire people, especially in the digital and marketing field, because we feel that is the area where there's maximum change happening, as you are all aware. We continue to hire people and, yeah, that's an ongoing process. I don't think that will be impacted because of the pandemic. Okay. For my second question, you had mentioned a few times already that one of the things you're focusing on is the digital transformation of the firm. Could you give us some specific examples on what are the most impactful projects in this? We will start off with something like marketing automation, which I think it is overdue for us. We need to do that. We are working on that. Automating our whole marketing system and consequently what happens with that is also how we interact with our customer in the parks. A lot of that can be digitized. Knowing our customer better, like how often is somebody coming to the park? Is there an opportunity for me to give offers to him? We're already doing it, but we have just started doing it. I think in a year or a year and a half, I think we'll have that completed. It's still in a work in progress right now. One of the areas, say, globally, people have worked on is something you mentioned in terms of digitally interacting with the visitors when they're in the park. That's what I'm saying. Yeah. There are two, three aspects of it. One is the whole marketing aspect of it, then the other is the whole customer aspect, customer service or customer interaction part of it. That also can be digitized and also the customer life cycle. How do we make sure that people come back to us at a certain point? Can we give them sweetening deals or how can we stay relevant in their lives even after they come and visit us and reduce the lag between one visit and the next? A lot of things are available in that whole realm. Amusement park industry generally has been a little slow internationally to embrace the whole digital culture because it is expensive to do in an amusement park because digitizing a park is also an expensive process. We are looking into that. Once the plans are more final, we will be sharing with everyone. Okay. This doesn't include digitizing the ride itself, right? You're not looking at digital rides or digital experiences in terms of- That also- Yeah. That also will be part of it for sure. I mean virtual rides. At this stage you're not able to share anything? Yeah. No, we can't. I mean, we just started work on that. Okay. Thank you. Thank you. We would like to remind participants that you may press star one to ask a question. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah, thank you for the opportunity. Just a housekeeping question. What is the breakup of ticketing and non-ticketing revenue for the quarter? On that, on our F&B pricing strategy, how are we looking to get customers to spend more on that when the parks reopen? Thank you. I think this quarter we had about 75/25. 75% was ticket and 25% non-ticket, which is higher than what we used to have in Q4 in previous years. The reason for that is we had higher percentage of retail footfalls as against group footfalls. Like pre-COVID, we used to get a lot of schools and colleges during January, February and March. In this last January, February and March, we got mostly retail footfalls, people who came, bought the tickets directly from us and came to the park. Because of that, they are higher spending people. Their propensity to spend is higher, and that is why our non-ticket revenue is better. I think Satish can maybe add something to that. Yes, sir. I think you have covered it very well. Okay. As I said, when things eventually get back to normal, how are you looking at that it will get back to where it was pre-COVID, the rough breakup? Is there some strategic shift you see to get the margins up in terms of getting more out of the F&B business? I think our strategy is definitely to improve our non-ticket spends, because I think non-ticket revenue, again, going back to the whole digital transformation part of it, is something that goes very well with that also. We will be able to sell, upsell and cross-sell F&B and merchandise to our customers better once we have those opportunities. We are already doing it, but we are at 75/25, but we want to obviously bring non-ticket revenue to at least about 30%, 30%-35%. Okay. Just a second question, when obviously the parks eventually reopen, hopefully pretty soon, do you expect the number of rides you can open, like something similar to the tragedies happened last year? Like the water rides may not be active and they may get active later. Yeah, I think it is hard to predict how it will be, but there could be every district and every state has a different way of handling this. Some states, they will allow you to open the water parks first. Some states, they don't allow you to do it. I think it is a bit of a mess. Eventually they do allow all aspects of the rides to be opened. Okay. If I just squeeze in a last question on the salaries. Last year, you had taken some pay cuts, obviously during the shutdown period. This year, are we now again looking at a fresh round of salary cuts or are we like reinstated the salaries and plan to continue with that? We had reinstated salaries whenever we were open, and especially open every day and people had to come to work and things like that. During the lockdowns, there is a salary cut again. Not as deep as what we did last year. We are definitely looking at some salary cuts so that we can maintain our cash flow. Okay. There will certainly be some cost rationalization, but we don't anticipate the lockdown period extended like last year. Last year we had about 7-8 months closed, park closed. We don't expect that type of a long lockdown on account of a second wave. There will be cost rationalization though. Yeah. Just for that, I think last year it was around INR 4 crores a month, right. Was our running cost, if I believe when the park. Exactly, yeah. So it will be a similar- It will be lockdown time, yeah. This will be slightly We will have similar levels. We will have somewhat similar levels. Okay. Fine. Yeah, that's very helpful. I'll set the mic. Thank you. The next question is from the line of Manoj Dua, an individual investor. Please go ahead. Sir, is it possible, can we have monthly breakdown of sales in this quarter? Arun Chittilappilly. What do you want? No, we give our results quarterly, but what you want to know the footfalls or what exactly you want to know? Anything. I want to understand how. These are all very working figures. Whether you want to go to that details? No, I actually want to understand the market. We send it to him later on also. Yeah, we can share it with you separately. Okay, thank you. That's the question. Thank you. Ladies and gentlemen, this was the last question for today. I would now like to hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities for closing comments. Yeah. Thank you everyone for joining us on the call today. I'd like to hand it back to the management for the closing remarks. Thank you all for attending the Wonderla Holidays Q4 FY 2021 result update. All of you please stay safe and take care and we'll see you soon. Thank you. Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.