Delta Corp Q4 PAT spurts 101% YoY to Rs 58 cr

Delta Corp's consolidated net profit soared 100.73% to Rs 57.65 crore on 16.81% rise in net sales to Rs 211.34 crore in Q4 FY21 over Q4 FY20.

On a consolidated basis, the company reported a net loss of Rs 24.10 crore in the year ended March 2021 compared with net profit of Rs 185.63 crore in the year ended March 2020. Net sales fell 45.84% to Rs 418.87 crore in the year ended March 2021 over the year ended March 2020.

The board has recommended a final dividend of Re 1 per equity share. The company also informed the resignation of Rakesh Jhunjhunwala, the non-executive, non-independent director, from the directorship of the company with immediate effect on account of personal reason.

Due to COVID‐19 pandemic and the consequent lockdown announced by the Government of India, the operations of the group were suspended since the third week of March 2020. During the current year, casino operations were closed till 30 October 2020. The casino operations resumed at Goa and Sikkim from the first week of November 2020 with restriction of 50% of the normal capacity, except for Deltin Caravela casino (under subsidiary - Delta Pleasure Cruise Company) which resumed operations from January 2021 and casino in Nepal (under subsidiary - Deltin Nepal) which has not resumed operations till 31 March 2021. The hotel operations at Daman have gradually resumed since the 'Unlock 1' (1 June 2020). Both casino and hotel have witnessed good growth in revenue in the fourth quarter of the current year.

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 i.e. from 1 April 2020 to 31 October 2020. The Group has provided a proportionate charge of license fees for the period from 1 April 2020 to 31 October 2020 amounting to Rs 55.42 crore. The provision has been created proportionately on quarterly basis amounting to Rs 47.63 for Q1 FY21 and Q2 FY21 cumulatively and for the month of October 2020 at Rs 7.79 crore. The license fees is only provided for and the actual payment for the same has not taken place.

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, favorably. 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 is the only listed company engaged in the casino (live, electronic and online) gaming industry in India. It currently own and operate casinos in Goa and Sikkim, offering approximately 1,800 gaming positions. In addition, it has also ventured into the fast-growing online gaming space through our acquisition of Gauss Networks, which operates the online poker site 'Adda52.com'.

Shares of Delta Corp fell 0.68% to Rs 160.60 on BSE. The stock traded in the range of Rs 160.60 to Rs 166.95 so far.

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