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Delta Corp posts Q1 net loss of Rs 28 cr

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Capital Market

Delta Corp reported consolidated net loss of Rs 28.24 crore in Q1 June 2020 as against net profit of Rs 42.48 crore in Q1 June 2019.

Consolidated net sales slumped 74.08% to Rs 48.34 crore in Q1 June 2020 over Rs 186.51 crore in Q1 June 2019. Pre-tax loss stood at Rs 34.78 crore in Q1 June 2020 compared with pre-tax profit of Rs 63.95 crore in Q1 June 2019. The company received a tax write back of Rs 6.11 crore in Q1 June 2020 compared with tax expense of Rs 21.65 crore in Q1 June 2019. The Q1 earnings was announced post trading hours today, 15 July 2020.

 

The revenue and the net profit/loss, for the current quarter, are not comparable with previous quarters or previous years, due to unprecedented times with the lockdown across the country and all the company's businesses being non-operational with the exception of online business.

The nationwide lockdown has, however, boosted the online gaming industry. The company said its online gaming arm, Adda52, reported strong revenue growth during this period.

The company has taken several necessary steps towards cost control which has helped the company minimise losses on account of the lockdown. The full impact and reflection of the cost control measure has kicked in the first quarter but will reflect fully in the second quarter.

The company has provided for the casino license fees, has made a representation to the government of Goa along with the rest of the industry, to consider a waiver of payment of licence fees during the lockdown period. The company said it is hopeful of a positive response on the same from the government.

The company reported a negative EBIDTA of Rs (20.05) crore, which includes a provision of Rs 23.68 crore on account of license fees payable. Since the fees are not actually paid and a representation pending with the government, if one excludes the license fees charged for the quarter then the EBIDTA is in effect positive and reflects the impact of the cost control measures and also the growth, robustness and contribution of the online business.

Delta Corp is the only listed company engaged in the casino (live, electronic and online) gaming industry in India.

Shares of Delta Corp was locked in an upper circuit of 5% at Rs 93.80 on BSE. The scrip hovered in the range of Rs 88 to Rs 93.80 so far.

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First Published: Jul 15 2020 | 9:59 AM IST

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