Casino and gaming services provider Delta Corp on January 9 said its consolidated net profit for the quarter ended December came in at Rs 34.48 crore, declining 59.34 percent. The company had reported net profit at Rs 84.82 crore in the same quarter last year.
Its revenue from operations for the quarter stood at Rs 234.41 crore, falling 15.58 percent from Rs 277.68 crore in the corresponding quarter, previous fiscal, the company said in an exchange filing.
Meanwhile, shares of Delta Crop on January 9 closed 0.20 percent lower at Rs 150.70 apiece on BSE.
Its two biggest business divisions - casino and online gaming - and saw sharp drop in revenue. Third and the smallest hospitality division saw improvement in revenue during the quarter.
The company said that during the quarter, Delta Corp and and its two subsidiary companies received show cause notices from the Directorate
General of GST Intelligence, Hyderabad, for alleged short payment of Goods and Service Tax (GST) aggregating Rs 16,822.98 crore while another subsidiary was asked to cough up Rs 6,384.32 crore from Director General of GST Intelligence, Kolkata.
The company said it and subsidiary companies have filed writ petitions and have obtained stay order from respective High Courts.
"Based on legal assessment [Delta Corp] is of the view that all the above notices and the tax demands are arbitrary in nature and contrary to the provisions of law. The Companies will pursue all the legal remedies
available to them to challenge such tax demands and the related proceedings," the company said.
Delta Corp also believes it has a good ground to defend against the said show cause notices and thus has not made provision for for it.
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