Revenue grew 39% YoY (est. of +34%) to INR2,014m in 2QFY19, primarily led by casino gaming segment (+40%) resulting from increased visitations (to 100k in 2QFY19 from 81k in 2QFY18) and higher gross gaming revenue (GGR; +20% YoY). EBIDTA of INR762m, too, exceeded our estimate of INR679m. EBITDA margin shrank 720bp YoY to 38% YoY (est. of 35%) due to contraction in online gaming margin (-3,600bp YoY, -900bp QoQ to 2%) and higher license fee (+112% YoY). Adj. PAT increased 11% YoY to INR481m (est. of INR441m). For 1HFY19, revenue grew by 42% YoY, EBITDA by 28% YoY and PAT by 39% YoY. We expect DELTA to deliver revenue growth of 24%, EBITDA growth of 15% and PAT growth of 15% in 2HFY19.
OutlookWe maintain our PAT estimates for FY19/20 and value the stock at 30x FY20E EPS. Maintain Buy with a target price of INR290.
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