Delta Corp Faces Share Drop and Financial Strain in Q3 FY24; Net Profit Plunges by 59.34%

Delta Corp Faces Share Drop and Financial Strain in Q3 FY24; Net Profit Plunges by 59.34%

Asif Iqbal | January 10, 2024 | 11:01 AM IST | Breaking News | Follow on Google News

Delta Corp Faces Share Drop and Financial Strain in Q3 FY24; Net Profit Plunges by 59.34%

Delta Corp Faces Share Drop and Financial Strain in Q3 FY24; Net Profit Plunges by 59.34%

Delta Corp, an online gaming company, faced a setback as its shares dropped by 5% to ₹143.10 each in early trading on Wednesday. The decline was triggered by the company’s disappointing financial performance in the third quarter of the fiscal year 2024 (Q3 FY24). Delta Corp reported a consolidated net profit of ₹34.48 crore in Q3 FY24, marking a significant 59.34% decrease compared to the ₹84.82 crore net profit in the same period the previous year.

The revenue from operations also experienced a downturn, registering ₹234.41 crore in Q3 FY24, a 15.58% decrease from ₹277.68 crore in the corresponding quarter of the previous fiscal year. The company’s EBITDA stood at ₹55.5 crore, reflecting a 45% decline compared to ₹102 crore in Q3 FY23. The EBITDA margins saw a notable fall, dropping to 23.9% from 37.4% in the October-December period of the previous fiscal year.

Breaking down the segments, income from gaming operations saw an 18% decline to ₹181 crore in Q3 FY24, compared to ₹222 crore in the same period the previous year. Online skill gaming operations revenue also decreased by 9% year-on-year, reaching ₹39.13 crore. However, revenue from the hospitality business showed a marginal increase, reaching ₹13.74 crore.

In addition to the financial results, Delta Corp disclosed that on September 27, 2023, the company and its two subsidiaries received show-cause notices from the Directorate General of GST Intelligence (DGGI), Hyderabad, alleging a short payment of Goods and Services Tax (GST) amounting to ₹16,822.9 crore for the period from July 1, 2017, to March 31, 2022.

Another subsidiary received a GST show-cause notice of ₹6,384.32 crore on October 28, 2023, from DGGI, Kolkata, covering the period from July 1, 2017, to November 30, 2022. Delta Corp highlighted that the industry-wide concern regarding demands based on gross bet value/gross face value, rather than gross gaming revenue/gross rake amount, prompted legal action. The company and its subsidiaries filed Writ petitions and obtained stay orders from respective high courts.

As of 9:45 AM, the stock showed signs of recovery, trading with a gain of 2.7% at ₹147.50 apiece. It is important to note that the views expressed in this article are those of individual analysts and do not necessarily represent the views of Mint. Investors are advised to consult certified experts before making any investment decisions.

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Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.