Shares of Delta Corp will be in focus on Thursday morning after the only listed firm engaged in the casino gaming industry, reported a muted set of numbers for the September quarter. The stock would also be in news as Delta Corp appointed Anil Malani as President and Chief Financial Officer with effect from October 11, as recommended by the nomination, remuneration and compensation (NRC) committee. Also, the company announced appointment of Manoj Jain as Chief Operating Officer of the company.
Delta Corp said its net profit for the September quarter came in at Rs 69.44 crore, up 1.74 per cent year-on-year (YoY) over Rs 68.25 crore in the same quarter last year. Net sales for the quarter rose 0.22 per cent to Rs 282.64 crore for the second quarter compared with Rs 269.97 crore in the corresponding quarter last year.
Delta Corp said its sales from its casino gaming division was up 3.4 per cent. The online skill gaming division - which includes rummy and poker games - saw 14 per cent drop in sales. Costs, excluding tax expenses, were up 1.8 per cent due to 3.3 per cent rise in licence fees and registration charges.
The stock has fallen 20 per cent in the last one month, taking its year-to-date fall to 34 per cent. On September 27, the holding company and two of its subsidiaries received show cause notices from the Directorate General of GST Intelligence, Hyderabad, for alleged short payments of GST amounting Rs 16,822 crore. The amount claimed were based on the gross bet played at the casinos and short payment of GST on consideration received towards the entry to the casinos during the same period, the company said in its earnings notes. The company said it has been an industry issue and multiple representations have been made by the industry participants to the government.
Delta Corp said that it has been legally advised that the tax demands are arbitrary in nature and contrary to the provision of law, adding that the company will pursue all legal remedies available to it.
Delta Corp said it feers no provision for impairment is currently required towards goodwill and other assets related to the two subsidiaries. Goodwill stood at Rs 93.55 crore, Delta Corp said.