Indian casino operator Delta Corp announced disappointing 3Q earnings that ended on December 31st.
According to the company’s financial report disclosed on Tuesday, Delta Corp’s consolidated net profit of Rs 344.8 million ($4.2 million) reflects a significant decrease of 59.34 percent from the Rs 848.2 million ($10.2 million) net profit recorded in the same period the previous year.
In Q3FY24, the company witnessed a decrease in revenue from operations, amounting to Rs 2.3 billion ($28.2 million)—a 15.58 percent decline from the Rs 2.8 billion ($33.4 million) reported in the corresponding quarter of the previous fiscal year.
The posted EBITDA of Rs 555 million reflects a 45 percent decrease compared to the Rs 1 billion ($12.3 million) recorded in Q3 FY23. EBITDA margins also saw a notable drop, standing at 23.9 percent, marking a significant 1,350 basis point reduction from the 37.4 percent reported in the October-December period of the prior fiscal year.
For a nine-month period, the company’s sales fell nearly 2.7 percent, standing at Rs 7.4 billion ($88.8 million) compared to Rs 7.6 billion ($91.3 million) a year ago. Revenue slightly fell 1 percent to Rs 8.2 billion ($97.9 million) compared to Rs 8.2 billion ($98.9 million) a year ago.
Net income was Rs 1.7 billion ($20.7 million) compared to Rs 2.1 billion ($25.3 million) a year ago. Basic earnings per share from continuing operations were Rs 6.42 compared to INR 7.86 a year ago. Diluted earnings per share from continuing operations were INR 6.42 compared to INR 7.83 a year ago.
In the same financial statement, Delta Corp notes that its two subsidiary companies had received show cause notices from the Directorate General of GST Intelligence, Hyderabad, for alleged short payment of Goods and Service Tax (GST) aggregating Rs 168 billion ($2 billion) for the period from 1st July 2017 to 31st March 2022, and another subsidiary company had received a show cause notice dated 28th October 2023, for alleged short payment of GST aggregating Rs 63.8 billion ($768 million) for the period from 1st July 2017 to 30th November 2022.
“Based on legal assessment, the management is confident of a favorable outcome of the aforesaid matter, and accordingly, no adjustments have been made to the accompanying financial results. Our conclusion is not modified in respect of this matter,” it wrote.
