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On Tuesday, April 11, India`s only BSE-listed hospitality and casino giant, Delta Corp Ltd, with interests in casinos, hospitality, real estate, and online gaming, released its Q4 results for the quarter ending March 31.
The company reported a net profit of ₹51.20 Crores for the January-March quarter, an increase of 6.4% from the corresponding quarter last year. However, QoQ net profits fell by up to 40% from ₹85 Crores in the quarter ending December 2022. The promising Q3 results were attributed to the busy holiday season in Goa.
The operational revenues of Delta Corp Ltd increased by 4% to ₹227 Crores for the period under review, compared to ₹218 Crores in the same quarter last year. In contrast, operational expenses jumped from ₹166 Crores to ₹184 Crores. The company’s total expenses rose 11% to ₹184 Crores for the quarter, compared to ₹166 Crores in the same period last year. The company’s margin — a key measure of profitability — came in at 26.4% compared to 31.6% for the year-ago period.
The board has announced a dividend of ₹1.25 per equity share of face value ₹1, a 125% dividend.
Given the lackluster results, the company`s stock price showed no significant movement post the announcement. Over 12.7% of the shareholding is with domestic institutional investors (DIIs) and mutual fund houses, while veteran investor Mukul Agarwal holds a 1.12% stake in the company.
Delta Corp is the only public company from the gaming industry listed on the stock market; this will change post the listing of Yudiz Solutions Ltd. The company operates several casinos and hotels across Goa, Sikkim, Daman, and Nepal.
Segment-wise, revenues from gaming operations increased marginally to ₹214 Crores in the January-March period compared to ₹210 Crores in the same period last year. Revenue from online skill gaming operations rose 12% to ₹47 Crores for the March quarter.
Delta Corp shares closed 3% lower at ₹189 on the NSE ahead of the results. The stock has lost nearly 13% in value this year and has underperformed the market, falling 40.42% in the last one-year period. The company`s stock prices have been under pressure, with a decision on the GST still awaited. At the same time, the High Court`s decision on the Deltin Daman casino license has been pending for many years.
On the positive side, MeiTY notifying the rules for online gaming and the company receiving in-principle approval from the Goa Investment Promotion and Facilitation Board for setting up an integrated resort at Pernem auger well for the future prospects of the casino major.
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