Delta Corp Ltd on July 9 reported a 67.6 percent slump in consolidated net profit at Rs 21.68 crore for the first quarter of financial year 2023-2025. The company had reported a net profit of Rs 68 crore in the year-ago period.
Revenue from operations also fell 30 percent to Rs 181 crore in the June quarter from Rs 259 crore last fiscal.
Sequentially, the net profit declined 69 percent from Rs 72 crore in the previous quarter (Q4FY24).
Further, the gaming and hospitality firm's EBITDA, or earnings before interest, taxes, depreciation, and amortization, fell down 68.2 percent to Rs 30.5 crore as against Rs 95.8 crore a year ago, while its margin also dropped to 16.9 percent as against 36.9 percent (YoY).
The board recommended a final dividend of Rs 1.25 per share subject to approval of shareholders at the ensuing Annual General Meeting.
Delta Corp also said that its board has approved the appointments of Tara Subramaniam and Pankaj Razdan as Additional Directors designated as Non-Executive Independent Directors for a tenure of 5 years.
Shares of Delta Corp on July 9 closed 1.38 percent lower at Rs 142.85 apiece on BSE. The stock had climbed close to 8 percent on July 8 a day the June quarter earnings.
In the past one month, the stock has gained over 20 percent, but it is trading lower than the month’s high reached on June 19. However, the stock has slipped significantly in the past one year, recording a drop of over 41 percent.
The stock had made some gains in the last one month following speculations that the gaming firm will receive some relief from the GST Council. The gaming industry was expecting the Council to make amendments to the CGST Act, 2017, which would quash retrospective tax demands.
However, the Council concluded with no relief in disappointment for the industry. The sector was also hoping that the council will review the 28 percent rate levied on online gaming and casinos.
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