Delta Corp surges 12%, hits over 3-year high after loss narrows in Q2

Shares of Delta Corp hit an over three-year high of Rs 305.6, surging over 12 per cent on the BSE on Tuesday, after the company’s consolidated net loss narrowed at Rs 22.57 crore in July-September quarter (Q2FY22) on the back of improved operational performance. The company had posted a net loss of Rs 28.93 crore in Q1FY22 and Rs 54.91 crore in Q2FY21. The stock was trading at its highest level since April 2018.

The company’s consolidated total income during the quarter grew almost flat at Rs 82.52 crore as against Rs 82.72 crore in the previous quarter. It had posted total income of Rs 46.47 crore in the year-ago quarter.

While announcing its second quarter (Q2) earnings, Delta Corp said, for a part of April 2021, the company’s casinos at Goa operated at around half or 50 per cent of normal capacity while it resumed normal operations with effect from September 20, 2021 with restrictions. Its hotels at Goa also operated at 50 per cent of normal capacity for a part of April 2021 and then with restrictions from July 5, 2021. READ ABOUT IT HERE

“The Group and the entire casino industry in Goa have made a representation to the Government of Goa, seeking a waiver / reduction / proportionate payment mechanism for casino licence fees 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 per direction of the Government of Goa,” Delta Corp said.

Delta Corp is India’s leading listed casino and gaming company. The Company is also the largest organised player in the industry and has presence across all the formats of gaming i.e. Live, Electronic and Online. The Company has established its presence in all of the casino destinations in India i.e. Goa and Sikkim. It owns and operates under both offshore and land-based licenses, supplementing the casinos with hospitality assets.

In the past three weeks, the stock has rallied 30 per cent on the National Stock Exchange (NSE). Including Delta Corp, the NSE added 8 other stocks for trading in the futures and options (F&O) segment from October 1, 2021. Typically, stocks that enter the F&O segment gain ground due to absence of circuit filters and increase in institutional participation due to improved liquidity.

In the financial year 2020-21 (FY21) annual report, Delta Corp said that it has capitalised majorly on online skill-based games such as poker, rummy, and fantasy sports that can be played for real money from majority states of India. Currently, it owns and operates the online poker site ‘Adda52.com’; and the online rummy site ‘Adda52rummy.com’.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor