© Reuters.
MUMBAI – Delta Corp, a prominent gaming and hospitality company, has reported a sharp decline in its consolidated net profit for the third quarter, which fell by 59% year-on-year to ₹34.48 crore. The company’s income from operations also decreased by 18% to ₹181.54 crore. Following the announcement, Delta Corp’s shares experienced a downturn in the stock market, marking a fourth consecutive session of losses. The shares dropped over five percent to a low of ₹143.1 and were later seen trading between ₹146.75 to ₹148.45.
The company is currently grappling with a Goods and Services Tax (GST) demand exceeding ₹23,200 crore, which it has chosen not to provision for, based on legal advice. Delta Corp contests the demand, arguing that it has no legal merit. The GST rate change, which shifted from a tax on Gross Gaming Revenue to a flat rate of 28% on coins sold, has significantly impacted the company’s financial performance. To counter customer resistance to the new GST rate, Delta Corp introduced promotional offers, which led to a reduced EBITDA margin, now standing at 24.1%.
Despite the financial headwinds and the ongoing dispute over GST demands, Delta Corp is taking strategic steps to diversify its business portfolio. The company has made investments in a joint venture with Peninsula Land Ltd. in the real estate sector and continues to hold a stake in Advani Hotels & Resorts.
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