Shares of Delta Corp inched up 1 percent in morning trade on July 26 after the casino and gaming player posted an 18.86 percent jump in net profit at Rs 67.91 crore for the quarter ended June 2023.
At 9.50am, shares of Delta Corp were trading 1.22 percent up at Rs 191.45 on the BSE.
The company posted a consolidated net profit of Rs 57.13 crore in the corresponding period of the previous fiscal 2022-23. Sequentially, the profit jumped 32.63 percent from Rs 51.2 crore.
Revenue from operations came in at Rs 277.65 crore, up 10.74 percent from Rs 250.72 crore in Q1 FY23, the company said in a post-market-hour filing on July 25. Its total expenses rose to Rs 195.01 crore from Rs 179 crore in the year-ago quarter.
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The casino and gaming segment achieved an EBIDTA of Rs 101 crore, reflecting a margin improvement over 1,000 bps on a QoQ basis and over 100 bps on a YoY basis, the company said.
Earlier on July 12, Delta Corp shares suffered their worst fall ever, slumping 28 percent, after the GST Council’s decision to impose a 28 percent Goods and Services Tax (GST) on online gaming and casinos.
“With regards to the recent GST council outcome, we are hopeful and confident, given the kind of representations and concerns being raised by both online gaming and casino industry, coupled with investor community and some States, a mutually amicable and favourable outcome will emerge,” the company said in its filing.
Jaydev Mody, Chairman of Delta Corp Limited, said regulatory clarity over issues concerning the industry is expected in due course of time. “The company and the management are seized of the issues and concerns around the business and are confident of overcoming the same by implementing the right strategies,” he said.
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Delta Corp is India’s only listed casino operator. It also has a subsidiary - Deltatech Gaming Limited, formerly known as Gaussian Networks – which has been a leader in India's online gaming industry since 2011 and the Street has been keenly waiting for its initial public offering (IPO).
The stock is often seen on the NSE's F&O ban list. A stock makes it to the list when derivative contracts in the scrip cross 95 percent of the market-wide position limit. It was also part of the late Rakesh Jhunjhunwala's portfolio for a long time. However, the ace investor exited it completely in June 2022.
Shares of the company are down over 11 percent this year till date.
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