Delta Corp shares slip 25% since Q1 earnings, firm to announce September quarter results today

Shares of gaming and casino firm Delta Corp are in focus ahead of Q2 and first half (H1) earnings set to be announced today. The stock has lost 25% since the firm announced its earnings for the quarter ended June 2023. Delta Corp stock closed at Rs 189.15 on July 25 and ended at Rs 142.20, up 0.60% in the previous session (October 10). Total 1.79 lakh shares of the firm changed hands amounting to a turnover of Rs 2.55 crore in the previous session. The stock has lost 37.78% in one year but lost 34 per cent since the beginning of this year. Delta Corp stock has a one-year beta of 1.4, indicating very high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 27.8, signaling it's trading in the oversold zone. Delta Corp shares are trading higher than 5 day and 10 day but lower than the 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

The stock slipped 19% in the last week of September after the firm received tax notices totaling Rs 16,822 crore from the Directorate General of GST Intelligence. The demand was for the period between July 2017 and March 2022. One notice for Rs 11,140 crore was issued against Delta Corp. The other notice for Rs 5,682 crore has been raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises, the company said in a regulatory filing.

In another instance of crash, the Delta Corp stock closed 23% lower at Rs 189.35 on July 12 after the GST Council imposed a levy of 28% GST on online gaming, horse racing, and casinos.

Delta Corp reported a 19 per cent rise in consolidated net profit at Rs 67.9 crore for the quarter ended June 30, 2023 against a profit of Rs 57 crore in the year-ago period.

Consolidated revenue rose 9 per cent to Rs 272.8 crore for the June quarter as compared to Rs 250.3 crore in year-ago period. Company's EBITDA in Q1 stood at Rs 95.8 crore as against the 87.5 crore last year in the same period. EBITDA margins stood at 35.1 percent in Q1 compared to 35 percent in the corresponding period in the previous fiscal. EBITDA refers to earnings before interest, tax, depreciation, and amortisation.

Delta Corp is engaged in the operation of casino. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.

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