Delta Corp tanks after reporting reverse turnaround in Q4

The company announced Q4 results after market hours on Thursday, 25 April 2013.

Meanwhile, the S&P BSE Sensex was down 72.73 points or 0.37% at 19,334.12.

On BSE, 9.23 lakh shares were traded in the counter as against average daily volume of 22.90 lakh shares in past two weeks.

The stock hit a high of Rs 68.50 so far during the day.

Delta Corp's consolidated total income from operations declined 27.97% to Rs 56.14 crore in Q4 March 2013 over Q4 March 2012.

Delta Corp's consolidated net profit declined 41.39% to Rs 29.33 crore on 16.56% growth in total income from operations to Rs 425.40 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Earnings before interest, taxation, depreciation and amortization (EBITDA) stood at Rs 108.50 crore in FY 2013. EBITDA margin stood at 26%.

The company's revenue from the core gaming business grew 14% to Rs 162.70 crore in FY 2013. Earnings before interest and tax (EBIT) for the segment stood at Rs 37.50 crore in FY 2013.

Delta Corp said it has reported lower net profit in FY 2013 mainly on account of higher operating expenses on new projects.

Commenting on the company's performance, Jaydev Mody, Chairman, Delta Corp said, "FY 2014 will see the fruits of our investments with the launch of ambitious new gaming and hospitality properties that will put us well ahead of the competition. We are confident that we will continue to enhance shareholder value through our core gaming segment with these new products, which are scheduled for launch in the first half of the current financial year".

Hardik Dhebar, CFO, Delta Corp said, "While the current margins are under pressure, we are confident of better and stronger margins going forward, given our new launches and our businesses' high operating leverage".

Delta Corp's board of directors at a meeting held on Thursday, 25 April 2013, recommended dividend of 25 paise per share for FY 2013.

Delta Corp through its subsidiaries, owns and operates two offshore casinos and two hotels in Goa. It holds three of the six gaming licenses in Goa.

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