Wonderla Holidays Limited (WONDERLA) Q3 FY23 Earnings Concall Transcript

Wonderla Holidays Limited (NSE:WONDERLA) Q3 FY23 Earnings Concall dated Feb. 08, 2023.

Corporate Participants:

Arun Chittilappilly — Managing Director

Satheesh Seshadri — Chief Financial Officer

Analysts:

Adhidev Chattopadhyay — ICICI Securities Limited — Analyst

Turaga Vivek — Best Pals Research and Advisory — Analyst

Kaustubh Pawaskar — Sharekhan — Analyst

Angad Katdare — Monarch Networth Capital — Analyst

Darshil Jhaveri — Crown Capital — Analyst

Keshav Garg — Counter cyclical PMS — Analyst

Gaurav Gandhi — Glory Tail Capital Management — Analyst

Meet Jogani — Meet Jogani Finance — Analyst

D Kanoria — Adithya Mills Limited — Analyst

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Wonderla Holidays Limited Q3 FY’23 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. Thank you. Over to you, sir.

Adhidev Chattopadhyay — ICICI Securities Limited — Analyst

Good afternoon, everyone. On behalf of ICICI Securities, I’d like to welcome everyone on the call today. Today from the Wonderla Holidays management we have with us Mr. Arun Chittilappilly, the Managing Director; and Mr. Satheesh Seshadri, the Chief Financial Officer.

Before beginning the call, I’d like to congratulate the management for delivering another very strong quarter, and now like to hand it over to them for their opening remarks and take us through the road ahead. Over to you, sir.

Arun Chittilappilly — Managing Director

Hello.

Adhidev Chattopadhyay — ICICI Securities Limited — Analyst

Hello. Yes sir, you are audible. You can go ahead. Sir, you are not audible at the moment.

Arun Chittilappilly — Managing Director

Can you hear me now?

Adhidev Chattopadhyay — ICICI Securities Limited — Analyst

Yes, we can hear you now, sir.

Arun Chittilappilly — Managing Director

Yeah. Good afternoon, everyone. Welcome to our Q3 and nine months earnings call. Joining me on this call is Mr. Satheesh Seshadri, our CFO. We are very happy to announce that in this quarter we have achieved an impressive set of numbers. We have clocked a record-breaking revenue in Q3. This marks the 5th consecutive quarter with double-digit growth revenue and in revenue and footfall.

To begin with, I’m absolutely delighted to report that in nine months we have crossed the INR300 crore revenue mark for the first time in the history of the company and 20 EPS mark has already been posted as the highest ever. We have consistently grown both value — and we have consistently grown both value and volume. Our EBIT margins have been at very healthy 52%. And an extremely commendable performance of balancing growth and profitability.

In our efforts to attract a very younger audience, we are promoting our parks as a destination for thrill events and grand parties. Our initiatives to host concerts have received tremendous response. We draw a sold-out concert events which have been held across Bangalore and Hyderabad in this quarter. Following the massive success of our Sunburn event in Q2, this quarter we had a New Year party in Hyderabad and another event in — large event in Cochin for New Year as well. A lot of these and more initiatives have contributed to generating higher footfall compared to our Q3 and nine months — compared to Q3 and nine month FY 20 for pre-COVID numbers.

Our footfalls in this quarter registered a growth of 28% [Technical Issues]

Operator

Excuse me, this is the operator. Arun sir, you are not audible if you’re speaking. Excuse me. Arun sir, can you join us. Ladies and gentlemen, the line for the management seems to be bad, please stay on the line while we reconnect with the management. Ladies and gentlemen, we have the line for the management reconnected. Please go ahead, sir.

Arun Chittilappilly — Managing Director

Sorry about that. I’m in the airport, so my connection is a bit bad, so please forgive me. Yeah, so anyway, our initiatives have contributed to a few higher footfalls compared to Q3 and nine months FY’23. The total footfalls has gone up by 27%, like I said. We continue to gain wallet share and grow our non-ticket revenue. Exciting initiatives have helped us improve the merchandise sales and SMB to 23% growth. Price hikes has been absorbed and we have recorded a 27% increase in ARPUs. Our strong operating leverage led to an enhanced EBITDA. This continues to be in a pricing trend. It has more than doubled from INR27 crores to INR61 crores, or up by 120%. I would like to highlight that we have registered highest-ever EBITDA margin of 52%, which was expanded by 1,400 basis-points. Subsequently, our profitability is making [Indecipherable] despite exceptional item raising. We clocked a massive 85% growth in our PAT. For the nine months, again, we have done some very good numbers with — of a INR23 crore, INR28 crore revenue reported and its a 44% growth compared to last year. EBITDA has been increased from INR108 crores to INR117 crores, which is remarkably drove a 64%.

Our parks provide an excellent — families and friends to bond together in a wonderful outdoor environment. So we’re very bullish on this segment going forward. I thank you all for your support. And we can now proceed to Q&A.

Questions and Answers:

Operator

Thank you. We will now begin with the question-and-answer session. [Operator Instructions] The first question is from the line of Turaga Vivek from Best Pals Research and Advisory. Please go ahead, sir.

Turaga Vivek — Best Pals Research and Advisory — Analyst

Thanks, Arun. Thanks for the opportunity. Can you — two questions. One, on the new parks because you’re tying up with Madhya Pradesh and other states, I don’t know at what stage, so Chennai is getting delayed because we have enough cash and even if we do the similar performance even if we don’t grow on this year, we’ll have enough capex for two to three parks. So can you throw light on how are you thinking of capex and how confident are you on the Chennai one and if Chennai one doesn’t come through, what is the next stage where you think you can go ahead because of your, I think, at least on the Twitter looks like you are going around lot of states.

And two, on your own — I’m not asking for a guidance, but your impressions on how next year would be given — will we grow it will be tough to maintain this year or do you think there is a reason to be optimistic about the next year’s growth. Thank you, Arun, and congratulations. Thank you very much.

Arun Chittilappilly — Managing Director

Thank you. So. We are only envisaging two to three projects for the coming financial. This is our INR350 crore to INR400 crore project in Chennai [Technical Issues] The Chennai project has been currently put on-hold because we’re still waiting for the waiver on the tax. So when that is done, we will resume operations, start construction. We had just put it on-hold, we are not abandoning depositors either. So that is the big side.

Regarding Orissa, I think we will be able to do completion on time, sometimes in 2025 we will open this park for the public. The Chennai park might get delayed by six months or so. But 2025 is when I think Orissa will open. And these two projects, we don’t need to raise any more money. I think we are okay. Our [Technical Issues] assurances will be more than enough for these two projects.

The other two projects, we will not be starting immediately. We will do currently only two projects at a time. So once Orissa the park is done, we will start working on Madhya Pradesh and so on. So at that point, we might have to raise some capital. Currently, we are not looking to do that until going for the size.

Turaga Vivek — Best Pals Research and Advisory — Analyst

So if Chennai is getting delayed, you will take up Madhya Pradesh or nothing like that. You are very confident that will go through?

Arun Chittilappilly — Managing Director

For some reason it gets further delayed for a long-time, then obviously we will look at other projects. But otherwise we will continue to do Chennai.

Turaga Vivek — Best Pals Research and Advisory — Analyst

So you have enough places, you are not worried [Speech Overlap]

Arun Chittilappilly — Managing Director

And next year I — next year. Yeah, we are not worried. Next year I think to double-digit growth compared to this year. Obviously, not 1.6 or 1.8, but I think we should grow by 16% to 20%.

Turaga Vivek — Best Pals Research and Advisory — Analyst

So you’re thinking that you will be able to grow on this even without — assuming that revenge travel and all.

Arun Chittilappilly — Managing Director

Yeah I think –. I don’t think that is over yet. And it should continue into the next year as well. Otherwise, I think our demand — I mean, I don’t think it will grow tremendously over this year’s numbers, but I think we can expect some margin growth. And, of course, our ARPU will grow.

Turaga Vivek — Best Pals Research and Advisory — Analyst

Got it, got it. So ARPU and volume together you’re getting low-double-digit at least.

Arun Chittilappilly — Managing Director

Yes.

Turaga Vivek — Best Pals Research and Advisory — Analyst

Thank you, Arun. Thank you very much.

Operator

Thank you. The next question is from the line of Kaustubh Pawaskar from Sharekhan by BNP Paribas. Please go ahead.

Kaustubh Pawaskar — Sharekhan — Analyst

Yeah, good afternoon, sir. Congrats for excellent set of numbers. My question is again on the footfalls. So, for nine months we have already reached around INR25 lakh footfalls. So is it fair to assume that we will end the years close to INR30 lakh footfalls and over the next two years should we expect footfall is growing in the range of 6% to 8% because in the pre COVID era the footfalls were growing in low-single digits, but now since you have placed some strategies where you are expecting — which are playing well for you and we have seen in quarter three you achieved INR9 lakh footfalls. So considering that, should we expect next year and year-after that footfalls growing by around 6% to 8%?

Arun Chittilappilly — Managing Director

Yeah, I think it’s fair that minimum 6% to 8% we are expecting. Hopefully, more than that also.

Kaustubh Pawaskar — Sharekhan — Analyst

Okay, Ad my second question is on the margin. So, for nine months we are at around 52%. EBITDA margin, so by maybe the year we might close EBITDA margin at around 45% to 47% depending on how the Q4 pan our. But going ahead should we expect margins to remain at this level for the a full-year at around 45%, 46% or there is a scope of further margin improvement. And whether in quarter three was there any one-off in case of expansion in margins or it was largely because of the strong growth in the footfalls which helped you to see better margins?

Arun Chittilappilly — Managing Director

Yeah. I think our margins are some of the best that we’ve ever had [Indecipherable] in terms of margin. I don’t think it will grow more than this. Maybe margins could down on EBIT because I think [Technical Issues] so the margins could some down a little bit, but for existing parks I don’t think the margins will [Technical Issues] Satheesh, can give more on some them? But I think — I don’t see margins going up more than.

Satheesh Seshadri — Chief Financial Officer

Sir, normally we make about 40% to 42% EBITDA margin. This year has been extraordinary. We have been able to contain some of the hold around the cost. But with the projects coming up and the footfall going to the scalable next level, we might have to invest in resource and the cost what we holded for this year, we might have to spend it next year. So we will not be — we might not be having this level of healthy EBITDA of 50% plus. We might be closing somewhere around 45% compared to 40%, 42% what we are being doing earlier [Technical Issues] we will be looking at around 45% margin.

Kaustubh Pawaskar — Sharekhan — Analyst

Thanks sir. Got your point. And my 3rd question was on — what is the contribution from online or e-commerce platform for your ticketing revenue make. It was in high-single-digits. Now, where we stand on that front?

Satheesh Seshadri — Chief Financial Officer

We do about close to 15% to 20% online booking on the walking footfall on walk-in footfall.

Kaustubh Pawaskar — Sharekhan — Analyst

Okay, and my last question is on the new plants, new, sorry, parks you are coming up in Madhya Pradesh, Punjab. So whether this will be close to the Odisha park, it will be smaller than your existing park in Bangalore, Kochi, Hyderabad or would be close to the larger parks? And again, over here, are we looking at a lease hold land where you will be developing the parks so that it won’t add stress to your balance sheet, so similar kind of Odisha model?

Satheesh Seshadri — Chief Financial Officer

So, in Madhya Pradesh we are not looking at a big park. We’ll be doing something small like a resort. Depending on the size of the city and what offer we get, we will do accordingly.

Kaustubh Pawaskar — Sharekhan — Analyst

Okay. Thank you.

Operator

The next question is from the line of Angad Katdare from Monarch Networth Capital. Please go ahead.

Angad Katdare — Monarch Networth Capital — Analyst

Thank you for the opportunity. First of all, congratulations on the fantastic set of numbers. One small bookkeeping question before I ask the question is, can you share the park wise mix of group and walk-ins for this quarter, please?

Arun Chittilappilly — Managing Director

We normally don’t give the group mix for the park levels. But at the overall level I can give it to you. Walk-in was at 44% and group was at 56% for the Q3.

Angad Katdare — Monarch Networth Capital — Analyst

Okay, great. So last call, you had mentioned about investment in technology, your agreement with variables and CRMs and you were waiting for results in the next three to six months, any updates on that? And what will be the total investment going forward for that across the three parks if it is decided to put the investment goes ahead, and will it be recurring or a one-time investment?

Arun Chittilappilly — Managing Director

The variables we are doing a POC and investment in Bangalore park to start with. We have already invested about INR2.5 crores in this regard. So we will do the trials and everything for about few months and we will replicate the same model in other parks. So this variables will help us in the seamless visitor journey, number one. Payment the gateway for F&B and retail inside the park, and this will also help us to do some type of management and other resource building. Thank you.

Angad Katdare — Monarch Networth Capital — Analyst

Yeah, so the investment…

Arun Chittilappilly — Managing Director

It is all capital investment.

Angad Katdare — Monarch Networth Capital — Analyst

It’s a capital investment, okay. Yeah, so one more question. So how much regarding the capex for the Bhubaneswar and Chennai, how much capex has been done and how much is pending?

Satheesh Seshadri — Chief Financial Officer

For Bhubaneswar, as of — we have done a commitment close to about INR13.5 crores till 31 of December. And further commitment of about INR16 crores has been done till time and close to about INR30 crores commitment is there for there for Bhubaneswar. The architect design and the basic enabling and construction work and that work is in progress. And of Chennai, there’s no major investment except for small investment on the networks, so what it was left out we are just completing. It’s close to about INR110 crores in Chennai.

Angad Katdare — Monarch Networth Capital — Analyst

Thank you so much. That’s all for me.

Operator

Thank you. [Operator Instructions] The next question is from the line of Darshil Jhaveri from Crown Capital. Please go ahead.

Darshil Jhaveri — Crown Capital — Analyst

Hello, hi, sir, congratulations on a great set of results. Thank you, and thank you for taking my question. So sir, I see our businesses are a bit seasonal or Q1 and Q3 would ideally be the best quarter. So how is Q4 planning out right now? Are we seeing some annuity every month, any way of footfall, would it be similar to Q2 or how would it pan out.

Arun Chittilappilly — Managing Director

Normally we don’t give the existing quarter performance while the during the period [Speech Overlap]

Darshil Jhaveri — Crown Capital — Analyst

Sorry, sir.

Arun Chittilappilly — Managing Director

Overall trend is similar whatever we are seeing. I think we can expect something similar.

Darshil Jhaveri — Crown Capital — Analyst

Okay, okay, sir. And I also wanted to ask with regards to next year’s growth that you said about 15% to 20% growth. But sir, with an increase of footfall and — so how much of ARPU increase are we seeing because I think we can unlock some value out there also. So, because even a 10% growth in footfalls and some similar growth in ARPU can help us a lot. So what kind of price increase are we seeing for the next year?

Arun Chittilappilly — Managing Director

Something similar. I mean, we are expecting — we might increase our pricing by between 8% to 12% around [Technical Issues] confident to take further price hike. Yeah, its reasonable to assume a [Technical Issues]

Darshil Jhaveri — Crown Capital — Analyst

Okay, thank you so much, sir, and all the best for the upcoming quarters. So, thank you.

Operator

Thank you. The next question is from the line of Keshav Garg from Counter cyclical PMS. Please go ahead.

Keshav Garg — Counter cyclical PMS — Analyst

Sir, many congratulations for excellent numbers. Sir, it’s very encouraging that we have opened a new vertical which is to host concerts and parties. So I’m trying to understand that is this like a one-off like on New Year’s and so on, or can it be a regular Friday, Saturday, Sunday across our three parks, can’t we organize parties?

Arun Chittilappilly — Managing Director

So we do — right now we are doing few events like once a month or — the large events we do once a quarter. Small events we are doing once a week, once in two weeks, so it keeps changing. It’s still a new field. So we have to keep evolving.

Keshav Garg — Counter cyclical PMS — Analyst

Sir, what I’m trying to understand that if we can arrange for some famous artist, then every weekend in every park can’t we like really do this?

Arun Chittilappilly — Managing Director

Yeah, I think we are planning to do [Technical Issues] have a better team in place [Technical Issues]So we are really looking to expand to the whole event and activities and different things we will be doing.

Keshav Garg — Counter cyclical PMS — Analyst

Sure, sir. So also now the apprehension is that since most people they don’t go to our water parks every year, I mean they go periodically once a few years, and since after COVID there was a huge lull. So this year now there is a lot of pent-up demand which has come and now we have a very-high base. So on-top of this base, next year sir, how confident are you that firstly we can hold-on to these numbers and then like you said that you are expecting a marginal growth in volumes as well as realization so as to overall growth can be 15%, 20%. So how confident are you about that considering that there is a major element of pent-up demand in this year’s numbers?

Arun Chittilappilly — Managing Director

Satheesh, can you answer it please.

Satheesh Seshadri — Chief Financial Officer

See, we have been trying few of the efforts or strategies what we have put in place and these strategies have been realizing for us in terms of digital marketing, number one. Number two, instead of traditional marketing. So our reach outs and content management is more different. We are also able to fix activities. We have at least two activities per park per month for both the walk-ins and groups. Consecutively we are doing. We’ve also reached — we have also appointed institutional sales head and strengthening the institutional sales side of it and we are optimistic the groups will perform. Number three. Number four, we are also working on tour operator. So our strategies have been — we have been consistently getting good feeds from these supports and we feel it could continue for the coming years also.

Keshav Garg — Counter cyclical PMS — Analyst

Great sir. And sir, wanted to understand that, sir, how many resorts do we have? Do we have a resort in each of our three parks or do we have only one resort in one park?

Satheesh Seshadri — Chief Financial Officer

We have only in Bangalore park currently. We have 84 rooms resort in Bangalore park. But in Kochi park we have tied-up with one of the star hotels there to offer can play offers. We are also exploring certain other other class similar to the stay in Bangalore park and it is still in the testing phase. Once it is done, we will replicate that model in other parks.

Keshav Garg — Counter cyclical PMS — Analyst

So, sir, is there enough space in our existing three parks so as to, let’s say, make our resort or to expand or to launch new rides?

Arun Chittilappilly — Managing Director

Yes, we do have — we do have additional unused land.

Keshav Garg — Counter cyclical PMS — Analyst

And sir, in the investor presentation its mentioned that we have two 20 acre land bank, so this land bank includes our existing three parks or this is we are only talking about Chennai and Orissa?

Arun Chittilappilly — Managing Director

This includes the land Bank which is owned by the company, that is Kochi, Bangalore, Hyderabad and Chennai.

Keshav Garg — Counter cyclical PMS — Analyst

Right sir. So thank you very much. And sir, lastly, just one word of caution, sir. There are many companies especially in Tamil Nadu and Andhra, sir which has taken land on lease from the government for 30 or 40-year lease and now when the lease has expired and they already have their plant over there. Now government is asking for unreasonable increase in lease rentals. So we should keep this in mind because in Indian government you know how this works, so to insulate us over the long-term. Sir, thank you very much.

Arun Chittilappilly — Managing Director

We’ll see after 100 years what is the lease amount nobody can predict.

Keshav Garg — Counter cyclical PMS — Analyst

Right sir. Great. Thank you.

Operator

Thank you. The next question is from the line of Gaurav Gandhi from Glory Tail Capital Management. Please go ahead.

Gaurav Gandhi — Glory Tail Capital Management — Analyst

Hi, sir, congratulations on the excellent set of numbers. Sir, what will be the capacity of Bhubaneswar park and Chennai Park?

Arun Chittilappilly — Managing Director

Hello. Chennai will be similar to Bangalore and Bhubaneshwar will be about half the size.

Gaurav Gandhi — Glory Tail Capital Management — Analyst

Chennai is similar to Bangalore and Bhubaneshwar?

Arun Chittilappilly — Managing Director

Around half the size, maybe two third of our big parks.

Gaurav Gandhi — Glory Tail Capital Management — Analyst

Two third or our big parks. And once the government approval received from Chennai government, how much time will it take to complete the Chennai park from there?

Arun Chittilappilly — Managing Director

18 months to years is what we are looking.

Gaurav Gandhi — Glory Tail Capital Management — Analyst

Two years. All right. Fine. Thank you.

Operator

Thank you. The next question is from the line of Meet Jogani from Meet Jogani Finance. Please go ahead.

Meet Jogani — Meet Jogani Finance — Analyst

Congratulation for the great set of numbers. So I was wondering any timeline for this Chennai approval?

Arun Chittilappilly — Managing Director

We don’t know. It could happen very soon or it could take more time. It depends on the government.

Meet Jogani — Meet Jogani Finance — Analyst

Also what precisely it is taking so long for this approval is we are waiting from a long-time.

Arun Chittilappilly — Managing Director

That we will have to ask the government, we don’t.

Satheesh Seshadri — Chief Financial Officer

Sir, we have to understand two things. One is we had intermittent COVID period and also there was a change in government, okay. The elections went through and everything. The new government has come in place and we are reviewing it. We are in constant touch with the government. As it is a government matter, we are also hoping they are responding favorably, they’re hearing our meeting, they are hearing us. We are hopeful that it will come, but we can’t put a timeline to it, okay. Thank you.

Meet Jogani — Meet Jogani Finance — Analyst

And have we taken any price hike in this quarter?

Satheesh Seshadri — Chief Financial Officer

We have taken last price hike was in September. We have taken a INR100 price hike. We have not taken any price hike this quarter.

Meet Jogani — Meet Jogani Finance — Analyst

Okay. Thank you.

Operator

Thank you. The next question is from the line of D Kanoria from Adithya Mills Limited. Please go ahead.

D Kanoria — Adithya Mills Limited — Analyst

Good evening, sir. I wanted to understand what is your average daily footfall in your Cochin park and what is the average spend per customer over there per day?

Arun Chittilappilly — Managing Director

Satheesh, please answer.

Satheesh Seshadri — Chief Financial Officer

Yes please. Kochi park, we have done for quarter is about INR3.1 lakh for this quarter is our both groups and walk-in footfalls is our numbers.

D Kanoria — Adithya Mills Limited — Analyst

That is for 90 days this INR3.16 lakh.

Satheesh Seshadri — Chief Financial Officer

For 90 days we have done about INR8.36 lakh.

D Kanoria — Adithya Mills Limited — Analyst

INR3.16 lakh you said, right?

Satheesh Seshadri — Chief Financial Officer

Sorry, INR3.16 lakh.

D Kanoria — Adithya Mills Limited — Analyst

One quarter is INR3.16 lakhs.

Satheesh Seshadri — Chief Financial Officer

Yes.

D Kanoria — Adithya Mills Limited — Analyst

And the average spend per customer?

Satheesh Seshadri — Chief Financial Officer

The ARPU for Kochi park, okay, as I said, we normally don’t give, but still I will share for the Kochi park ARPU for the quarter, correct. For the quarter it is about INR1,000 rupees. One second.

D Kanoria — Adithya Mills Limited — Analyst

INR1,000 rupees. Okay, okay. And would you say that the January-March quarter is the leanest quarter in the year because of exams for children, etc?

Satheesh Seshadri — Chief Financial Officer

Kochi was 1,100 for the ARPU.

D Kanoria — Adithya Mills Limited — Analyst

Okay, very good. So. I was asking whether the January-March quarter is traditionally the leanest quarter because of exams.

Satheesh Seshadri — Chief Financial Officer

See, the leanest quarter is normally Q2 is the leanest quarter because it’s a monsoon period. And Q3 sometimes we got good response because many of the corporates and the schools and colleges want to close the budget, okay. And also we have got some good season during this Q4 too in terms of Sankranti, Republic day, Woman’s day, and also the Holi and other things coming up, some seasons are there during the Q4. Q2 is normally the weakest of the quarter.

D Kanoria — Adithya Mills Limited — Analyst

Okay. And that probably Q1 is the best because of holidays.

Satheesh Seshadri — Chief Financial Officer

Q1 is the best quarter from the footfall and the ARPU perspective because we have got the best rates during that.

D Kanoria — Adithya Mills Limited — Analyst

Okay. Thank you very much.

Operator

Thank you. [Operator Instructions] The next question is from the line of Venkatesh Subramaniam from Logic Tree Investment Advisors Private Limited. Please go ahead.

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Yes, sir. Good evening. My question is on the new growth opportunities at Punjab, Madhya Pradesh, Odisha. So two questions. What is the probability of. Something going through Punjab and Madhya Pradesh and in what timeframe do you expect that? Then apart from this are you also talking to other state government as this concurrently?

Arun Chittilappilly — Managing Director

See, we are reasonably confident about Madhya Pradesh. In fact, they are very serious, they’re very keen for us to invest in Madhya Pradesh. Punjab also they have been very forthcoming. Like again, these are government matters, so its hard to finally say what is going to come out of it, but we are reasonably confident that these governments are very — everybody seems to be very keen to have a new investment and value-creation in their states and they keen for large amusement parks projects to come. So we are hoping that [Technical Issues]

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Okay, so and if that were to happen, at least by this calendar year we will get to know whether it’s working out or not?

Arun Chittilappilly — Managing Director

Not all of it. I mean, because are talking to many state governments. For example, Madhya Pradesh and Orissa more or less certain that we will go through. The others, we are still in [Technical Issues]

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Right sir. Who else, you were talking to Gujarat as well as, is it, sir?

Arun Chittilappilly — Managing Director

We are talking to a bunch of different — lot of state governments, most of them.

Satheesh Seshadri — Chief Financial Officer

These are all at discussion stages, okay. It’s all government matters. So it’s going to take some time for us to get clearance from the government. We will let you know once the MOUs are signed.

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Got it, sir. Thanks. One follow-up question from an earlier participant. So you broadly said things are looking okay and we can probably look at 15% to 20% growth next year overall. Did I get it right, sir? 15%, 20% in terms of topline broadly.

Arun Chittilappilly — Managing Director

Yeah, 15% minimum we should be able to do it, that’s the hope anyway. But again, these are unprecedented times. We really don’t know how the crowd and how the public are going to react in different, different states. But we are hoping. I think there is definitely a demand for travel and leisure. And I don’t think that demand is going to abate very quickly. Traveling abroad has become much more expensive than pre COVID. So I think people are [Technical Issues]

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Okay, when you interact with your customers, basically there is a lot of strong consumer sentiment broadly towards spending?

Arun Chittilappilly — Managing Director

Sor far, yes, yes.

Venkatesh Subramaniam — Logic Tree Investment Advisors Private Limited — Analyst

Sounds good, sir. Thank you, wish you the best.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you sir.

Arun Chittilappilly — Managing Director

Thank you all for attending our Q3 conference call. We hope to come back next quarter with even stronger set of numbers. And thank you all for your support and wishing you all the best.

Operator

[Operator Closing Remarks]