Shares of Delta Corp fell by more than 4 percent to Rs 136 per share on July 10 after the company reported disappointing results for the quarter ending in June (Q1FY25), due to higher GST rates, general elections, and seasonal factors.
The company's consolidated net profit plummeted by 67.6 percent year-on-year (YoY) in Q1FY25 to Rs 21.6 crore, down from Rs 68 crore in the same period last year. Revenue from operations also declined by 30 percent YoY to Rs 181 crore in the June-ended quarter, compared to Rs 259 crore a year earlier.
On a sequential basis, Delta Corp's profit nearly halved from Rs 86.88 crore reported in the previous quarter. Meanwhile, revenue rose from Rs 128 crore in the December quarter.
Operationally, Delta Corp's earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 68.2 percent YoY to Rs 30.5 crore in Q1FY25, compared to Rs 95.8 crore in the year-ago period. The company's EBITDA margin also sharply contracted to 16.9 percent in Q1FY25 from 36.9 percent in Q1FY24.
The company’s board also recommended a final dividend of Rs 1.25 per share. Additionally, they approved the appointments of Tara Subramaniam and Pankaj Razdan as Additional Directors designated as Non-Executive Independent Directors for a tenure of 5 years.
So far this year, the stock of this online gaming firm slipped over 5 percent, underperforming a 12 percent rise in the benchmark Nifty 50 index. However, in the past month, Delta Corp shares surged over 14 percent, outperforming the Nifty 50 index which rose modestly by 4 percent.
The stock gained in the last month due to speculations that the gaming firm would receive some relief from the GST Council. However, the Council concluded without providing the expected relief, disappointing the industry. The sector also hoped that the Council would review the 28 percent rate levied on online gaming and casinos.
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