Delta Corp Shares Drop 3 percent on Weak Q3FY25 Results

On 14 January, the stock market prices of Delta Corp fell more than 3 percent to INR 106, after the company declared weak performance in the third quarter of FY24-25.

They have fallen by 27 percent in the last one year compared to 5 percent rise in Nifty 50.

Reducing their third quarter losses from 21.2 percent  to 3.5 percent, they have recorded a Year-on-Year improvement in net profits by 3.5 percent-ending with a total sum of Rs 35 crore. The same quarter of the previous year saw a 7.5 percent reduction in revenue figures, amounting to Rs 194 crore. EBITDA levels fell by approximately 42.4 percent reaching only Rs 32.2 crore as compared to last year-resulting in the shrinkage of EBITDA margins by 1,000 basis points to 16.6 percent.

Delta Corp also includes real estate, gaming, hospitality, and more. It serves three casinos in Goa under its brand Deltin including Deltin Royale, Deltin JAQK, and Deltin Caravela.

Between mid-2023 and the first half of 2024, Delta Corp and several other companies in the sector received demand notices amounting to thousands of crores. However, the Supreme Court, at the government's request, granted a stay on GST proceedings against a group of online gaming companies, citing concerns over limitation.

The Supreme Court has delivered plenty of ammunition for the online gaming companies that could have been put to good effect if the final order is pronounced by GST authorities on the rightful recovery from all online gaming companies we learned earlier of a demand note against 71 online gaming companies following the DGGI action.

Companies that offer online gaming took issue with the interpretation of the GST clause that said 28 percent GST would be paid instead of the 18 percent amount up to October 1, 2023. The GST Council interpreted the provisions of the law in so far as they apply to online gaming to mean that it involves bets games, be they skill- or chance-based, to be charged a 28 percent GST on the entire value of bets received by the firm and not on the gross gaming revenue.