Delta Corp gains 8% post September quarter results

The stock was up 8% to Rs 245 on the BSE in intra-day trade on back of heavy volumes after the company reported 11% YoY growth in its consolidated net profit at Rs 481 million in Q2FY19.

Shares of Delta Corp rallied 8% to Rs 245 on the BSE in intra-day trade on back of heavy volumes after the company reported 11% year on year (YoY) growth in its consolidated net profit at Rs 481 million in September quarter (Q2FY19). It had a profit of Rs 433 million in the same quarter a year ago.

The company’s revenue grew 39% at Rs 2,014 million on YoY basis. EBITDA margin shrank 720bp YoY to 38% YoY on account of contraction in the online gaming margin.

“The Goa government in the current period has notified revised license fees for onshore and offshore casinos operating in Goa. As a result, the impact of the license fee in the current quarter is Rs 60 million,” Delta Corp said in a statement.

The cost of material consumed and change in inventories for the current period includes project related expenses of one of the reality subsidiary company and it does not have any impact on profit and loss account, it added.

“The company’s casino gaming revenue grew 40% YoY; segmental EBIT margin was flat YoY at 37%,” Motilal Oswal Securities said in results flash. The brokerage firm maintains ‘buy’ rating on the stock with target price of Rs 281 per share.

In past three trading days, shares of Delta Corp surged 16% as compared to 3.3% rise in the S&P BSE Sensex.

At 02:39 PM; the stock was trading 7% higher at Rs 242, against 0.81% gain in the benchmark index. The trading volumes on the counter jumped three-fold with a combined 5.99 million equity shares changed hands on the NSE and BSE so far.