Delta Corp has posted a strong set of earnings despite GST headwinds this quarter. The year on year (YoY) net revenue was up 8 percent at Rs 145.3 crore versus Rs 123 crore. (Net revenue not comparable due to entertainment tax & GST accounting). Q2FY17 included entertainment tax of Rs 13.5 crore but entertainment tax is now subsumed at GST level. GST additional cost is around 1.5-2%.
It is the only listed company engaged in the casino (live, electronic and online) gaming industry in India.
The YoY EBITDA was up 15 percent at Rs 65.5 crore versus Rs 56.7 crore. Profit after tax (PAT) was up 41 perent at Rs 43 crore versus Rs 30.6 crore for the same period last fiscal.
Throwing more light on the numbers, Hardik Dhebar, Group CFO, Delta Corp said historically second quarter has always been a good one and Q3 is also a great quarter for Goa as a destination per se. So the momentum of Q2 slides into Q3. Therefore, he is confident of robust conference going forward to.
Despite the disruptions of demonetisation and onset of goods and services tax (GST), the company has managed to not only overcome those disruptions but have also managed to go back to the earlier trajectory and even surpass that, said Dhebar.
He is confident of the doubling profits from FY17 levels in FY18. Margin improvement is also on the cards aided by online business going ahead, said Dhebar. The profits for six months of FY18 stood at Rs 67-68 crore.
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