Delta Corp slumps nearly 5% as Q1FY25 profit falls 67% yoy

Delta Corp stock fell 4.7% to ₹136.10 in early trade on July 10 after the gaming and casino player posted a 67.6% decline in consolidated net profit at ₹21.68 crore for the first quarter of the financial year 2024-2025.

Delta Corp posted a net profit of ₹67.9 crore in the corresponding quarter, the company informed bourses in a regulatory filing. Revenue from operations declined 30.3% to ₹180.7 crore against ₹259.3 crore in the year-ago period.

Further, the gaming firm's EBITDA fell 68.2% to ₹30.5 crore as against ₹ 95.8 crore a year ago, while its margin also dropped to 16.9% as against 36.9%.

Further, the company’s board recommended a final dividend of ₹1.25 per share subject to shareholders' approval at the ensuing Annual General Meeting.

Additionally, Delta Corp’s board approved the appointments of Tara Subramaniam and Pankaj Razdan as Additional Directors designated as Non-Executive Independent Directors for a tenure of 5 years.

The stock has jumped 20% in the last one month following speculations that the company may receive some relief from the GST Council. The gaming industry was expecting the Council to make amendments to the CGST Act, 2017, which would quell retrospective tax demands.

However, the GST Council didn’t provide any relief, a decision that disappointed the industry. The sector was also expecting the Council to review the 28% rate levied on online gaming and casinos, but that also didn’t happen.

The stock has fallen significantly in the last one year, plunging over 42%. The stock touched a 52-week high of ₹247.95 on July 11, 2023, and a 52-week low of ₹104.30 on June 4, 2024. At 9:30 AM on Wednesday, the stock cut some losses and was trading 1.2% lower at ₹141.15.