Wonderla Holidays Limited (NSE:WONDERLA) Q4 FY23 Earnings Concall dated May. 25, 2023.
Corporate Participants:
Arun K. Chittilappilly — Managing Director
Satheesh Seshadri — Chief Financial Officer
Analysts:
Adhidev Chattopadhyay — ICICI Securities — Analyst
Kaustubh Pawaskar — Sharekhan by BNP Paribas — Analyst
Angad Katdare — Monarch Networth Capital — Analyst
Anupama Bhootra — Arihant Capital Markets — Analyst
Aejas Lakhani — Unifi Capital — Analyst
Keshav Garg — Counter Cyclical PMS — Analyst
Dhruvesh Sanghvi — Prospero Tree — Analyst
Sourav Dutta — Minerva Asset Advisors — Analyst
Jins Varghese — Tavasya Capital — Analyst
Sakshi Chhabra — Swan Investment — Analyst
Rahil Shah — Crown Capital — Analyst
Bhavya Shah — Orient Capital — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Wonderla Holidays Limited Q4 FY ’23 Earnings Conference Call, hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities. Thank you and over to you, sir.
Adhidev Chattopadhyay — ICICI Securities — Analyst
Good evening, everyone. On behalf of ICICI Securities, I’d like to welcome everyone on the Wonderla Holidays Limited call today. From the management we have with us Mr. Arun Chittilappilly, the Managing Director; and Mr. Satheesh Seshadri, the Chief Financial Officer.
I’d now like to hand over the call to the management for their opening remarks. Over to you gentlemen. Thank you.
Arun K. Chittilappilly — Managing Director
Hi, good evening, everyone. This is Arun, Managing Director of Wonderla Holidays. Thank you for joining us today. We would like to extend a warm welcome to all of you for this call to discuss Q4 results. I’m very ecstatic to discuss our phenomenal performance with all of you. Record-breaking the word I would use to describe our results and for the period in review. Across multiple key metrics we have absolutely smashed previous records and raised our bar to unprecedented heights. FY ’23 was a blockbuster year for us and we have recorded our highest EPS ever and locking in at about 130% growth over previous EPS in FY ’20. The process of more than doubling up [Technical Issues] also registered in terms of high footfalls, revenues, EBITDA and PAT.
The dedication and strategic approach of our team have yielded remarkable results. Strong growth momentum led to an average 39% footfall growth across all parts in FY ’23. This was largely enabled by encouraging response from walk-ins, groups and all aspects of our customer base. Our digital marketing strategy has been especially remarkable and we’ve been able to do timely promotions and pull crowds. We’ve also done marquee musical events, festivities and occasions to visit and our motto has been create more occasions to visit Wonderla. Q4 was also the fifth consecutive quarter of double-digit growth for the company, registering 2 times growth over Q4 FY ’20.
The aggregate footfall across three parks this year amounted to 33 lakhs, averaging over 1 million footfalls [Technical Issues] for a park. Again, these are all record-breaking numbers and the full year footfalls compared to pre-COVID base of FY ’23. Bangalore Park has 12 lakh footfalls, grown by 33%, Kochi Park with 11.4 lakhs, grew by 47%, and Hyderabad at 9.7 lakh, registered a growth of 37%.
Our average ARPU for the year was INR1,240 with a healthy growth in non-ticket revenue, driven by our strategic initiatives to gain higher wallet share via merchandise and exciting F&B offerings. Our FY ’23 revenue is at INR429 crores, which grew by 58%. Our operating leverage led to record 49% EBITDA margin with EBITDA at INR211 crores, also doubling over the base of FY ’20. PAT for the fiscal year is INR149 crores, again, 2 times the profit of INR65 crores, generated in FY ’20. PAT margin stands at 33%. Also, the highest EPS at INR26.3. Following this year with the highest profitability in our history, we’ve also recommended a dividend payout of INR2.5 per equity share.
Proceeding to the financial highlights for the quarter, we had about 8 lakh footfalls, again clocking a 2 times growth over Q4 of FY ’20 and revenue of INR98 crores over a base of INR42 crores for the corresponding period in FY ’20. EBITDA in Q4 was INR42 crores against INR5 crores in Q4 of FY ’20. And our EBITDA margin is at 43%. Being debt-free cash rich, the company enjoys high profitability. Q4 FY ’23 PAT came in at roughly INR35 crores and a margin of 31%.
The Board of Directors recently accepted the resignation of our CFO, Mr. Satheesh Seshadri. Company places on record its appreciation for the invaluable contribution made by him during his tenure. The Wonderla family wishes him the best in his future endeavors. I’m also delighted to announce the work has commenced in our fourth park in Orissa. Construction is in full swing and we are also making headway into our Chennai project, which also we will be starting very shortly.
Thank you all for your constant support, and now we can open for Q&A.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Kaustubh Pawaskar from Sharekhan by BNP Paribas. Please go ahead.
Kaustubh Pawaskar — Sharekhan by BNP Paribas — Analyst
Yeah, good evening, sir. Thanks for giving me the opportunity and congrats for good set of numbers. My first question is on the quarter one. So, quarter one is seasonally strongest quarter for us. So this time in Bangalore, we have seen election period. And also, there was a period of unseasonal rains as well. So, considering that, do we see any impact on footfalls for this quarter? Or should we expect steady kind of a growth in Q1, especially for Bangalore for us?
Adhidev Chattopadhyay — ICICI Securities — Analyst
We are actually okay. I mean, there was some dip in numbers here and there, but overall, the numbers are growing compared to last year and our numbers will be better than last year.
Kaustubh Pawaskar — Sharekhan by BNP Paribas — Analyst
Okay. Okay. Sir, my second question, in the media interactions you mentioned that you are looking at ARPU growth of around 10% to 12%, so I can understand that non-ticketing revenues would have have a — would also — should be growing for that. But are we see — are we also expecting some some kind of a ticket price raise this year or if we have taken any increase in the ticket prices?
Arun K. Chittilappilly — Managing Director
We raised our ticket prices about — by 11% already. We usually do about two or three price corrections in a year. We’ve taken one already, so roughly about 10% to 12%,
Kaustubh Pawaskar — Sharekhan by BNP Paribas — Analyst
Okay, okay. And my last one is on the EBITDA margins, this year we have seen our EBITDA margins at around 49%, highest in past several years, because of the strong operating leverage. But going ahead, should we expect our EBITDA margins stabilizing at around 45%, 46% or we should expect it to stay at around 49%.
Arun K. Chittilappilly — Managing Director
Yeah. I don’t think this will probably be high mark, because now going forward we have new investments and new capex. So, EBITDA margin I think might come down, but overall, we should be able to manage good EBITDA margin but higher than this probably — I don’t know, it’s probably unrealistic.
Kaustubh Pawaskar — Sharekhan by BNP Paribas — Analyst
Correct. And one last if I can squeeze in, on the Chennai project, so if you can provide some guidance as to when we should expect this project to start or still there are certain approvals which are yet to…
Arun K. Chittilappilly — Managing Director
We are planning to complete towards — the government order says we should — we have a two-year construction period and then we have a 10-year tax holiday on the entertainment — local entertainment tax. So, we hope to finish construction within the next two years and then two years from now we hope to open this park to public.
Kaustubh Pawaskar — Sharekhan by BNP Paribas — Analyst
Okay. Thanks, sir. Thanks for the opportunity. I will get back into queue. Thank you.
Operator
Thank you. Our next question comes from the line of Angad Katdare with Monarch Networth. Please go ahead.
Angad Katdare — Monarch Networth Capital — Analyst
Thank you, sir for the opportunity. First of all, congratulations on the fabulous set of numbers. My first question is a bookkeeping question. Sir, we have reported a total ARPU for 23 is INR1,243, can you please give a split of ticket and non-ticketing.
Arun K. Chittilappilly — Managing Director
75% will be ticket and 25% will be non-ticket.
Angad Katdare — Monarch Networth Capital — Analyst
Okay, sir. Yeah, my second question is, sir, we plan to shift the ratio of ticket to non-ticket from the 75-25 to 60-40. Can you please give a relative timeline for that?
Adhidev Chattopadhyay — ICICI Securities — Analyst
See that was a long-term objective, it’s not something that we can do overnight. We hope to get to a 70-30 kind of number in the next two years. And then 60-40 within the next five years. So, something like that is what we are planning.
Angad Katdare — Monarch Networth Capital — Analyst
Okay. Sir, so we are seeing frequent post [Phonetic] park events happening at all three parks. Can you please give split of the total footfall compared — so coming from post park events? That would be helpful.
Arun K. Chittilappilly — Managing Director
I don’t think we have — Sateesh, do you have numbers for the event. I don’t think we have separately captured that.
Satheesh Seshadri — Chief Financial Officer
We do normally about 3,000 to 5,000 footfall per event. That’s what is the trend has been and these are all the mega events what we are doing and we are also doing — every fortnightly, we are doing the Saturday event for the parks, which creates the momentum for us. Okay, these things helps to create some vibes and move, put up some content out. So, that’s how it is being leveraged.
Angad Katdare — Monarch Networth Capital — Analyst
Okay, just to clarify, 3,000 to 5,000 includes all three parks every fortnight?
Satheesh Seshadri — Chief Financial Officer
3,000 to 5,000 per event, per mega event.
Arun K. Chittilappilly — Managing Director
Per event per park.
Satheesh Seshadri — Chief Financial Officer
Per event per park. And the frequency is fortnight?
Arun K. Chittilappilly — Managing Director
Not fortnight. This will be maybe once in a — yes. So, we will do about two events per quarter. So, about 10,000 per park per quarter, something like that.
Angad Katdare — Monarch Networth Capital — Analyst
Okay, one last question. Sir, you had started a pilot project on variable tax in Bangalore park. Any update on that?
Arun K. Chittilappilly — Managing Director
It’s still ongoing, it will take us maybe about six months to a year to finish that.
Angad Katdare — Monarch Networth Capital — Analyst
Okay, thank you so much, sir. I’ll get back in queue.
Arun K. Chittilappilly — Managing Director
Thank you.
Operator
Thank you. Our next question comes from Anupama Bhootra with Arihant Capital. Please go ahead.
Anupama Bhootra — Arihant Capital Markets — Analyst
Yeah, first of all, congratulations for great numbers. Sir, my first question is, can you throw some light on our Orissa project like when it is going to start and what kind of projections you have as far as the revenue contribution is concerned? And the second question is regarding margins. You’ve seen like significant expansion in margin. So, what are the drivers for this margin expansion?
Arun K. Chittilappilly — Managing Director
Drivers of margin expansion is your ticket to capex ratio. So for example, if your — the amount of your tickets that you can charge — the ticket price that you can charge by the capex. So if your capex is high, obviously, your — and if your ticket prices, you’re not able to charge a corresponding ticket price, then obviously, your margin will come down. So, that is the biggest one. Orissa project, we hope to complete in — we already started work since March. So — and two years is the time line. So hopefully, two years from now, we will be able to open the park, or maybe even earlier also, but two years is conservatively what we’ve kept.
Anupama Bhootra — Arihant Capital Markets — Analyst
And what kind of contribution are we expecting from this part?
Arun K. Chittilappilly — Managing Director
Satheesh can give you some numbers.
Satheesh Seshadri — Chief Financial Officer
Okay. The — we are talking about 5 to 6 lakh footfall, which — during the year one, that has been the trend whenever new park has opened. And about some [Technical Issues] the existing ARPU is what we are looking at in Orissa park.
Anupama Bhootra — Arihant Capital Markets — Analyst
Okay. Thank you so much.
Operator
Thank you. Our next question comes from Aejas Lakhani with Unifi Capital. Please go ahead.
Aejas Lakhani — Unifi Capital — Analyst
Yeah, hi, congratulations on an excellent set of numbers. So, three questions. First one is, I was — I’m not — I haven’t fully understood the Chennai Park comments. I was still under the impression that you had the local body tax concern. So, is that done away with. Could you brief us a little bit on that? Because I thought that was…
Arun K. Chittilappilly — Managing Director
Yeah, so we had asked for a 10-year waiver of the local body tax and they have accepted that request. So, we don’t have that problem anymore.
Aejas Lakhani — Unifi Capital — Analyst
Okay. And so therefore you have started construction effectively now…
Arun K. Chittilappilly — Managing Director
We will be starting, we will be starting soon. Yes, but we are already preparing to start work there.
Aejas Lakhani — Unifi Capital — Analyst
Perfect. And I’ve understood that. And the other thing is that the local body tax waiver for 10 years will start once your construction period is over or it includes…
Arun K. Chittilappilly — Managing Director
So, there is two-year construction period and then after that there will be 10-year holiday.
Aejas Lakhani — Unifi Capital — Analyst
Wonderful. My second one is that, if you could explain the unit economics of how the Odisha Park and which is the more asset-light park work. So, do you have as you know, a lease payment to be made during this with state government? Your unit economics here if you exclude the cash…
Arun K. Chittilappilly — Managing Director
We don’t have too much capex in terms of land because that is a big saving for us. Typically, we spend between 30 to — in case of Chennai, almost INR100 crores on land. So, that whole component gets completely erased. We have a very minute payment of lease. So practically, it’s not a big amount at all for us. So that — it takes care of one — that takes away one big chunk of capex for us. The other thing that we will do in our asset-light parks is we will be a bit careful in our choice of rides and attraction. It will have a higher mix of our in-house developed rides. It will also have imported — some [Technical Issues] attractions also. But the mix will be slightly different and also it will cater to a Tier 2 city, I’m also getting the taste of that area and the weather and things like that.
So, that is how we are able to bring down the capex by some, let’s say, INR350 crores to INR400 crores to less than INR150 crores. So, INR150 crores will be the — that’s the rough capex that we are planning. And we will be able to charge roughly INR600 to INR700 ARPU there. So, that will obviously give us a good footfall to investment — sorry, ARPU investment ratio will be much higher there or equal to what we do like, for example, in a Bangalore. So, we’ll be able to [Technical Issues] amount will work out for us. But I mean, this is how the rough calculations we have for now.
Aejas Lakhani — Unifi Capital — Analyst
Got it. So, did you say the ARPU to capex ratio will be similar for a big park as well as a PPP park.
Arun K. Chittilappilly — Managing Director
Yeah, yeah, it will be. In fact, it will be slightly more favorable I think.
Aejas Lakhani — Unifi Capital — Analyst
Okay. So basically — and is it fair to say that this asset-light model is what you would look to replicate with other state governments in the future or are you still open to purchasing land and then putting up your own park?
Arun K. Chittilappilly — Managing Director
We are not — we prefer not to do land purchase going forward because that makes our balance sheet very heavy. We are already a very asset-heavy company. So going forward, we would like to do more of asset-light model, but asset-light model can be done in a Tier 1 and Tier 2. So, right now we are doing Tier 2. But Tier 1 is also possible.
Aejas Lakhani — Unifi Capital — Analyst
Wonderful. And just, you’ve been — there been an impetus at your end to ensure that ticket sales are more retail versus the wholesale one where you’ve increased the group sizes and commission paid you are trying to curtail that. So, could you just give some color on, probably over the last, like say, couple of years back, how that retail to wholesale mix in your ticketing revenues has been?
Arun K. Chittilappilly — Managing Director
Satheesh, can give you some details on that.
Satheesh Seshadri — Chief Financial Officer
Yes, we have done about 33.1 lakh footfall. In that both the 13.1 lakh is groups and close to 20 lakh is retail, that is walk-ins. So, the ratio is about 60-40.
Aejas Lakhani — Unifi Capital — Analyst
Wonderful. And what was this ratio say, three years back prior when you did not have this endeavor?
Satheesh Seshadri — Chief Financial Officer
It is just 1% here and there. That’s it.
Aejas Lakhani — Unifi Capital — Analyst
Okay, so your recent efforts to increase more online sales, more — convert them, convert more retail, could you speak a little bit more about the initiatives you’re doing there to increase this retail ticket sale contribution?
Arun K. Chittilappilly — Managing Director
So, as a policy we are — we like retail support. Also, we are constantly tweaking our discount policies to ensure that we have more retail visitors and also, it’s also a function of marketing — our marketing strategy is also completely different. It’s not a full, it’s not — we still did a lot of discount to get footfalls back and so, because this is the last — FY ’23 is our first year after COVID. So, our full — I mean, sorry, our retail to group ratio would have remained the same. But this year, I think you’ll see more focus on retail as against groups. And which is the way for us we feel that’s the way for us.
Aejas Lakhani — Unifi Capital — Analyst
Got it. And lastly, could you speak, you’ve spoken about trying to use wearable technology to reduce or to observe how people are spending time inside the park to improve your…
Arun K. Chittilappilly — Managing Director
We are still at a piloting stage. So, once we have some results, we will share.
Aejas Lakhani — Unifi Capital — Analyst
Okay. And any efforts on building the team for these activities, these mega 3,000 to 5,000? You mentioned that you wanted to build a better team in place to execute. So, any…
Arun K. Chittilappilly — Managing Director
So, this year, you can expect an expansion to our leadership team. We are looking to induct a technology head and we are looking to induct HR head, people function, so we will see some induction to our leadership team this year, three — maybe three people. Also, Satheesh has put in his paper. So, we are also looking at a new CFO candidate. So, three — I mean, we can see — we can expect maybe three to four people be added to our leadership team this year.
Aejas Lakhani — Unifi Capital — Analyst
Wonderful. And you’ve been speaking to other governments for similar PPP model. Any update on say, an MP or any other state government?
Arun K. Chittilappilly — Managing Director
They’re all very bullish, in fact Punjab and MP have been extremely bullish for a Wonderla project to come in their state. So, we can expect some announcement on these two. But we are also talking to Goa and also maybe likely Gujarat also, we will initiate some discussions. So, these are some of the plans. As and when there is some result, we will keep you updated.
Aejas Lakhani — Unifi Capital — Analyst
Thanks so much and all the best.
Arun K. Chittilappilly — Managing Director
Thank you.
Operator
Thank you. Our next question comes from the line of Ashwini Agarwal with Demeter Advisors. Please go ahead. Ashwini, your line is unmuted, you could please ask your question. Since there is no response from Ashwini, we move on to our next question, which is from the line of Keshav Garg with Counter Cyclical PMS. Please go ahead.
Keshav Garg — Counter Cyclical PMS — Analyst
Sir, I’m trying to understand, so that our fourth quarter revenue is less than the third quarter revenue but sir, the past trend is that our fourth quarter revenue used to be more than the third quarter revenue. So sir, am I missing anything or what is the reason for the same?
Arun K. Chittilappilly — Managing Director
Usually, our fourth quarter is lesser than third quarter revenue. Are you sure you’re looking at the correct number? I’m not really sure. Satheesh?
Satheesh Seshadri — Chief Financial Officer
You’re right, sir. Normally we do about 30% during the third quarter, footfall and [Technical Issues] about 20%, that’s [Technical Issues].
Arun K. Chittilappilly — Managing Director
So, fourth quarter is always bigger than third quarter, so I don’t know from where you got the…
Satheesh Seshadri — Chief Financial Officer
Third quarter, yes, you’re right.
Keshav Garg — Counter Cyclical PMS — Analyst
Sir, also sir, we already have INR250 crore net cash in our balance sheet plus we’re generating around INR200 crore operating cash flow every year. And I understand that for the Chennai Park, the land has already been acquired. Sir, so what I am trying to say that sir, don’t you think that we are a little too conservative in our growth and that maybe we can take more project simultaneously?
Arun K. Chittilappilly — Managing Director
So, we are uncomfortable doing so many projects simultaneously. We are doing two projects simultaneously now, Chennai and Orissa, so that will take care of our capex for the next two years. But also we are like I said just now, we are looking at new projects also. So, we are building a pipeline of new projects that we can execute. So, as and when our existing projects under WIP complete, we can start new projects.
Keshav Garg — Counter Cyclical PMS — Analyst
Sir, but in the next two years, we won’t start any new projects, that we are sure of.
Arun K. Chittilappilly — Managing Director
Not sure. As of now, these two completely green lighted. So we will proceed with those. As and when we get new projects, again green lighted, we will evaluate and take a decision at that point.
Keshav Garg — Counter Cyclical PMS — Analyst
And sir, lastly, sir, for this FY ’24 financial year, sir, I missed that, you said that you have already taken some kind of price hike. And sir, so what more price hikes can we expect for this financial year?
Arun K. Chittilappilly — Managing Director
That is a function of adding new rides and footfall growth and yield and things like that. So, we’re not planning anything else, but from time-to-time, we will do it.
Keshav Garg — Counter Cyclical PMS — Analyst
Okay, sir. Thank you very much and best of luck.
Arun K. Chittilappilly — Managing Director
Thank you.
Operator
Thank you. Our next question comes from Dhruvesh Sanghvi with Prospero Tree. Please go ahead.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Hello?
Arun K. Chittilappilly — Managing Director
Yes.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Yeah. Great set of numbers, Arun, congratulations to the team.
Arun K. Chittilappilly — Managing Director
Thank you.
Dhruvesh Sanghvi — Prospero Tree — Analyst
And just one, what has been the tone for the current quarter, because this being one of the best ones in the cyclicity of things. The coming quarter, we have already probably closing the month end for May also. So, I think you have guided on 10% type of a footfall growth, so are we seeing the similar trend for the 60-day…
Arun K. Chittilappilly — Managing Director
5% to 10%. 5% to 10% is what we predicted and I think we will be there, somewhere there, we don’t know yet. But as of now, we should be able to do that.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Right. So, why I was asking this particularly is that particularly when we see the Kochi Park before 2020, we used to struggle around 7, 7.5, and like we have come back with of vengeance like anything, above 11.4 lakh footfalls.
Arun K. Chittilappilly — Managing Director
Cochin and Hyderabad, both have been top performers. And in fact, Cochin continues — both continue to be very good performers.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Even for the current ongoing year of FY ’24, you feel that, that or the higher base, you will be able to do better than this. Right?
Arun K. Chittilappilly — Managing Director
Yeah, I think so.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Okay, okay, fine. And just one more part in terms of the initiatives post COVID that you have taken in terms of other non-ticket revenues, which was — which predominantly in the past used to be food, let’s say. But that other part of the non-ticket revenues, what is the total percentage today? Is it already significant in terms of events taking up, let’s say, 5%, 7% of the total revenues this year or some light on that.
Arun K. Chittilappilly — Managing Director
It will be incremental. So, you can expect maybe 1% or 2% improvement in our non-ticket revenue because of this.
Dhruvesh Sanghvi — Prospero Tree — Analyst
No, sorry. What I am trying to understand is the initiatives, the new initiatives taken after COVID on the non-ticketing side, are they already significant in terms of 4%, 5% of the total revenues or no?
Arun K. Chittilappilly — Managing Director
So, that comes in both. That comes in not only in [Technical Issues] in terms of ticket also. [Technical Issues] So, we see a small improvement in booked.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Okay, fine. Thanks a lot. Thank you.
Arun K. Chittilappilly — Managing Director
Yeah.
Operator
Thank you. Our next question comes from Sourav Dutta with Minerva Asset Advisors. Please go ahead.
Sourav Dutta — Minerva Asset Advisors — Analyst
Yeah, hi, thank you for the opportunity. I had a quick question on the capex side. You had earlier guided for a capex of around INR9 crores to INR10 crores per park on the higher side, which would be around INR30 crores per park totally for the full year. But for FY ’23 the total capex is around INR44 crores. So, I just wanted to understand is this because of the Bhubaneswar project or is there some one-off here?
Arun K. Chittilappilly — Managing Director
Sorry, I didn’t understand your question.
Sourav Dutta — Minerva Asset Advisors — Analyst
Earlier you had guided for around INR9 crores to INR10 crores of capex per park. That should be around INR30 crores…
Arun K. Chittilappilly — Managing Director
The additional capex will be 10 — not INR10 crores, it will be 10% of our top line. So, if we have done for INR50 crores this year, we will keep aside INR45 crores for capex in our existing projects.
Sourav Dutta — Minerva Asset Advisors — Analyst
Okay, so INR10 crores of the top line growth…
Arun K. Chittilappilly — Managing Director
It will be 9% — 10% of our top line, we will source from capex.
Sourav Dutta — Minerva Asset Advisors — Analyst
Okay, understood. Secondly, previous participant asked a similar question. I just wanted to understand that since our future products are likely to be asset-light and we would be generating around INR200 crores of cash flow every year and have a capex of INR30 crores or maybe [Technical Issues] every year. So, our cash would swell by around INR160 crores, INR170 crores each year. Just wanted to understand why are we so averse to paying out dividends, higher dividends or conducting buybacks and taking up more leverage for expansions? Any reason for being so conservative and not using a leverage for the expansions?
Arun K. Chittilappilly — Managing Director
I mean, we have cash on hand, so we want to definitely use the cash because then we have very high capex coming our way. So, we want to be prudent in our dividend. So, roughly 10% to 15% of our PAT, we will give out as dividend. That is the plan. And so that’s what we’ve been doing. And I don’t think, so more than that because we have so much — so many capex coming in our way.
Sourav Dutta — Minerva Asset Advisors — Analyst
Yes. But the future projects are likely to be quite asset-light. There wouldn’t be any land expenditures as we just spoke about. So…
Arun K. Chittilappilly — Managing Director
It will be — it’s hard to predict. So sometimes, we will end up buying land also. Some geographies, we may not be able to get land through the government. So, we’ll end up buying. So, it’s hard to predict. Every state has a different policy towards this. So, that’s why we have to be a bit conservative.
Sourav Dutta — Minerva Asset Advisors — Analyst
All right, sir. Understood. That’s it from my side. Thank you.
Operator
Thank you. Our next question comes from the line of Jins Varghese [Phonetic] with Tavasya Capital. Please go ahead.
Jins Varghese — Tavasya Capital — Analyst
Hi. Just wanted to understand two things. In terms of — you’ve guided for about 33 — so this year, we’ve done about 33 lakh footfalls, right? So going forward, you think there is growth Bangalore is already about 11 lakh, 12 lakh or — so is there more opportunity coming from Hyderabad because in terms of slightly lower? So, are you seeing any park-specific trends in these kind footfall growth? And also, is there any plan to kind — to expand or brownfield expansion within these parks itself to kind of, increase the footfall? That was the first question.
Secondly, in terms of — so obviously, there is a gestation in terms of like — every time you identify a project and for the project to come onstream, it’s almost a two-year kind of a time frame, right? So, are you — is there any, say, acquisition opportunities or a park, which is not doing well, you can take over and kind shorten this time cycle so that there is more predictability or the [Indecipherable] growth doesn’t come and there’s more predictability. Is that even a feasible option going forward?
Arun K. Chittilappilly — Managing Director
So, your first question is, of course, I kind of answered it in the previous question. So, we will be earmark roughly 10% of our top line for expanding offerings at our existing projects. So, that is what we are [Technical Issues] — doing a bit slow on that pre-COVID but we’re accelerating that and we will expand because our parks are pretty much running full every day, especially during summer months. So, we will definitely expand, so that we can have more footfall, I mean especially during season time.
Second question, acquisition, so we are not, we usually don’t — we are not very bullish on acquisitions. Because the existing operators will obviously want net valuation for [Technical Issues] and then buying it and then modifying it to our standard, with again more capex. So, things are — the main differentiating factor for a Wonderla park is our high efficiency in our capex. So, when we acquire a company and modify it, our efficiency will vanish. So, we are not very — unless there is a specific opportunity, we are not that open to acquisitions. We are more happy to do maybe management contracts and things like that. So that we are exploring, but that also is hard because this is a very tailor-made offering, it’s not something that we can — it’s not like a hotel where I can buy and rebrand it as Wonderla hotel. Building a park, usually, we have to do it from scratch, so it’s just harder to do it. I’m not saying it’s impossible, but it’s harder to do it.
Jins Varghese — Tavasya Capital — Analyst
Okay. But you would be open to something like that, right? So just because — because the growth will be very organic now right, at least for the next year, year and a half, it will only looking at a small increase in the realization and some increase in footfall. But that big chunk of growth will only come maybe in FY ’25 later half. So, in future, if you can more than this or I mean, any thought process towards that, that is what I was asking, trying to figure out, because there is cash…
Arun K. Chittilappilly — Managing Director
There are not so many amusement parks also, right? So, that is the other challenge because there aren’t that many parks available in India. And whatever is available, people are willing to sell it usually because of high real estate value, they want to unlock, and we don’t buy high-value real estate as a policy. So, we always look for cheaper real estate. So, those are some conflicting requirements. So based on that, it’s not that easy to find properties to buy or acquire.
Jins Varghese — Tavasya Capital — Analyst
Thanks, thanks. Thanks a lot and all the best.
Arun K. Chittilappilly — Managing Director
Thank you.
Operator
Thank you. Our next question comes from Sakshi Chhabra with Swan Investment [Phonetic]. Please go ahead.
Sakshi Chhabra — Swan Investment — Analyst
Hi, so wanted to understand that in — usually in Q1, we do 40% of our total revenue. But based on our weight Q4 performance the Q1 like contributed around 35%, so based on the new events and all that we are doing, are you seeing a change in the seasonality going forward?
Arun K. Chittilappilly — Managing Director
Yeah, so our new strategy to kind of move away from seasonality and to get uniform footfalls throughout the year. So that is some – -we had to work on that. And so that’s something that we hope to achieve this year also.
Sakshi Chhabra — Swan Investment — Analyst
Okay, thank you.
Operator
Thank you. Our next question comes from Ashwini Agarwal with Demeter Advisors. Please go ahead. Ashwini, your line is unmuted, please go ahead. Since there is no response from Ashwini, we move on to our next question from the line of Rahil Shah with Crown Capital. Please go ahead.
Rahil Shah — Crown Capital — Analyst
Hello, good evening. Sir, you’re already existing in three locations, right. You’ve present there for a long-time now and recently you moved to Odisha, you moved a bit towards the east now. So, have you considered any other regions across India? Have you — do you have any plans in the future to do so?
Arun K. Chittilappilly — Managing Director
I just answer that. We have new projects that we are looking at in larger Tier 1 and Tier 2 cities across the country. So, we are talking to a few state governments with the — whether we could do projects there. So, as and when we have confirmed news, we will share with you. But we are looking at Punjab, we are looking at and Gujarat, we are looking at Madhya Pradesh, we are looking at Goa.
Rahil Shah — Crown Capital — Analyst
Okay, okay. Sorry, I missed that, but thank you for repeating. And can you also repeat for me what capex you are — do you plan for Odisha?
Arun K. Chittilappilly — Managing Director
INR150 crores.
Rahil Shah — Crown Capital — Analyst
INR150 crores. Okay. And so given, you just mentioned that you…
Arun K. Chittilappilly — Managing Director
Your questions are mostly repeated, so if you could do your research and then come back, it will be nice.
Rahil Shah — Crown Capital — Analyst
This is my last question. And I just want to ask you said you’ll be moving away from [Indecipherable] and try and have uniform footfall. So, as for this year and someone mentioned that you will see meagre growth given Odisha will be coming up in FY ’25, so what kind of — can you give any outlook for FY ’24 in terms of top line.
Arun K. Chittilappilly — Managing Director
Sorry, we don’t do that kind of — like I told you [Technical Issues] we can’t give you a clear guidance because we are looking at a 5% to 10% footfall growth and 10% ARPU growth, 10% 12%, so that should give you a range.
Rahil Shah — Crown Capital — Analyst
Okay, no problem. Thank you.
Operator
Thank you. Our next question comes from Dhruvesh Sanghvi from Prospero Tree. Please go ahead.
Dhruvesh Sanghvi — Prospero Tree — Analyst
Yeah. Just also wanted to ask you, did you even consider Imagicaa and participate in the possible restructuring which went through? I just wanted to understand the rationale. I mean, I understand that it’s over. But if we did not participate, why not, etc., and some background thought on what went inside your mind.
Arun K. Chittilappilly — Managing Director
So, we were approached by Imagicaa, it’s just that we didn’t want to do INR500 crore, INR600 crore capex that time during COVID and like I said, we are doing more asset-light than this model now, which is what we are more comfortable doing. Also like I said, Imagicaa was built with a different philosophy in mind, they have very high capex rise and so for us, we’ve been getting into — our standards would have been even more expensive. After buying it, we would have had to invest more. So, these are some of the reasons why [Technical Issues].
Dhruvesh Sanghvi — Prospero Tree — Analyst
Okay, okay. Fine, thanks a lot.
Arun K. Chittilappilly — Managing Director
Thanks.
Operator
Thank you. Our next question comes from Angad Katdare with Monarch Networth. Please go ahead.
Angad Katdare — Monarch Networth Capital — Analyst
Yes, thank you again for the opportunity. Just one clarification, you mentioned the Bhubaneswar park ARPU will be around INR600 rupees. Is it considering if it starts today or are you telling that amount for FY ’25 when it will start? Just…
Arun K. Chittilappilly — Managing Director
I didn’t say INR600, it will be INR600 to INR800, it’s hard to predict how the ARPU will be, we’ll see based on demand ARPU will change — so, if we see high demand, it can go up to even INR900.
Angad Katdare — Monarch Networth Capital — Analyst
Okay. Thank you so much. That’s it from my side.
Arun K. Chittilappilly — Managing Director
Yeah.
Operator
Thank you. Ladies and gentlemen, we have reached to the end of the question-and-answer session. I would now like to hand the conference over to Mr. Bhavya Shah from Orient Capital. Please go ahead.
Bhavya Shah — Orient Capital — Analyst
Thank you, everyone for participating in this con-call today. I’d also like to thank the management of Wonderla for taking time out and answering all the questions today. Orient Capital is Investor Relations advisor to Wonderla Holidays. For any queries, please feel free to get in touch with us. Thank you so much.
Arun K. Chittilappilly — Managing Director
Thank you all for the call, for attending this call. Continue.
Operator
[Operator Closing Remarks]