Revenue increased 46% YoY (est. of +31%) to INR1,873m, primarily led by robust growth in Casino gaming revenue (+53% YoY). EBIDTA margin of 35% (flat YoY) exceeded our estimate of 33%. This is encouraging considering the significant increase in the license fee run-rate (annual license fee increased from INR100m in 4QFY18 to INR240m in 1QFY19). EBIDTA of INR654m, too, came in ahead of our estimate of INR558m. Adj. PAT grew 96% YoY to INR414m (est. of INR365m) in 1QFY19.
OutlookDELTA performed well in a seasonally soft quarter, primarily driven by resilient growth in Casino revenue. From a discretionary spend point of view, Casino business appears to be on an uptrend. Considering this, we raise our PAT by 2% for FY19 and 4% for FY20, and expect sales/PAT CAGR of 26%/28% over FY18-20. We value the stock at 32x FY20E EPS to arrive at a target price of INR301.
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