Delta Corp Q3 Results: Net profit plunges 59% YoY to Rs 34 crore; revenue drops 15%

Leading casino operator Delta Corp‘s consolidated net profit fell 59% year-on-year (YoY) to Rs 34.4 crore for the quarter ended December 2023. The same stood at Rs 84.8 crore in the year-ago period.

Revenue from operations during the said quarter too declined 15% to Rs 232 crore compared with Rs 273 crore in the same quarter of last year.

The company has reported an EBITDA of Rs 55.5 crore in the reporting third quarter, down about 45% from a year ago. It was Rs 102 crore in the third quarter of the previous year.

Meanwhile, EBITDA margins too dropped sharply to 23.9% in the October-December period from 37.4% in the corresponding period of the previous fiscal.

Segment-wise, income from gaming operations was down 18% to Rs 181 crore in the third quarter against Rs 222 crore a year earlier.

Online skill gaming operations revenue too declined 9% YoY to Rs 39.13 crore in the reporting period. Revenue from the hospitality business was up marginally to Rs 13.74 crore.

Other income for the quarter rose 9% to Rs 12.73 crore. It was Rs 11.65 crore in the last year period.On a sequential basis, Delta Corp‘s net profit halved from Rs 69.44 crore reported in the preceding September quarter.

During the third quarter, the company’s total expenses jumped 4% to Rs 195 crore as compared to Rs 189 crore in the corresponding quarter of previous year.

Shares of Delta Corp have been under pressure in the recent past, falling nearly 40% in six months as the company’s subsidiaries were hit by a series of GST demands.

The management of the company believes that until the GST matter against the subsidiaries gets effectively concluded, no provision for impairment is currently required towards investments made in these companies.

However, in the last one month, the stock recovered with gains of about 10%. On Friday, ahead of the results announcement, Delta Corp’s shares closed 0.6% lower at Rs 149.3 on NSE.