Delta Corp Result Analysis Q1 FY20-21

Delta Corp Result Analysis Q1 FY20-21

Delta Corp Limited, previously known as Arrow Webtex Ltd., is an Indian gaming and hospitality corporation that owns and operates casinos and hotels under several brands. It is India’s only listed company engaged in casino gaming.

Revenue down 74.1% at Rs 48.3 crore

Net Sales at Rs 0.03 crore in June 2020 down 99.97% from Rs. 119.91 crore in June 2019.

Quarterly Net Profit at Rs. 42.08 crore in June 2020 down 3.86% from Rs. 43.77 crore in June 2019.

EBITDA stands negative at Rs. 7.49 crore in June 2020 down 110.97% from Rs. 68.27 crore in June 2019.

No revenue reported for gaming and hospitality operations

Online gaming segment revenue up 60% at Rs 57 crore

Adda52 has seen a revenue surge and growth at a faster pace

Company has paid fees of license of Rs 25.3 crore in current quarter and has made representation to Goa Government for the waiver of the casino license fees

Due to the COVID–19 pandemic and in line with the directives issued by the Government of Goa, all the Casinos and Hospitality businesses have not been operating during the quarter. The Company is required to pay an annual recurring license fee upfront for operating its casinos. The Company has therefore provided a proportionate charge of license fees of Rs 9.97 Crores for the quarter, as required statutorily. However, the Company and the entire casino industry in Goa have made a representation to the Government of Goa, seeking a waiver / reduction / proportionate payment mechanism for the period of shut down. Due to the pandemic situation, the stress on the operations and the representations made, the management is hopeful that the Government of Goa may consider its request, favourably. In such a situation, the provision of license fees made in the books may not be payable in full or in part, as it depends upon the directives to be issued by the Government of Goa. The said License Fees is only provided for and the actual payment for the same has not taken place. 

Impact: Result is in line with the expecation due to business disrupted on account of Covid-19, Q2FY21 will also be down. The good thing is focusing and diversified online gaming and increase their subscriber base which will be good in future once Casino operational both business vertical offline and online will be good revenue generation onward.

Disclaimer: The information provided herein is based on publicly available information and other sources believed to be reliable, but involve uncertainties that could cause actual events to differ materially from those expressed or implied in such statements. The document is given for general and information purpose and is neither an investment advice nor an offer to sell nor a solicitation. While due care has been exercised while preparing this document, we do not warrant the completeness or accuracy of the information. We will not accept any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice.

Follow, Like, subscribe and share

"Your Trust, Our Financial Expertise."

Infyture, Investment For Your Future

Contact: +91-7990271953 // 8347871052

Email: infyture@gmail.com

Website: http://infyture.wordpress.com

Facebook Page: https://www.facebook.com/infyture4future/

Youtube:https://www.youtube.com/channel/UCjOxVGTKQiK5O0mdcuMBCdw?view_as=subscriber

Blogger: https://infyture.blogspot.com/

 

Financial Planning || Equity Tip || Demat Account || Mutual Fund Investment || Life Insurance || General & Health Insurance || PMS & mini PMS || Retirement Planning || NPS Enrollment