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Delta Corp reports huge surge in profits; to list online gaming subsidiary

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Delta Corp, India’s leading casino operator has reported a significant growth in earnings for the quarter ended December 2021, with consolidated profit at Rs 70.38 crore a steep rise from a record low last year during the same period. The company had reported a profit of Rs 1.28 crore in the December 2020 quarter and posted a loss of Rs 22.57 crore in the September 2021 quarter.

The consolidated revenue from operations jumped to Rs 247.22 crore in Q3 FY22, doubled from Rs 120.82 crore in the year-ago period and jumped more than three-fold compared to Rs 74.72 crore revenue recorded in the September 2021 quarter. Casinos in Goa have opened in the second half of September 2021 after they were ordered to shut down due to the second wave of Covid19 in March-April 2021.

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Delta Corp online gaming arm to be listed

Board has approved the appointment of advisors, bankers and other intermediaries by subsidiary Gaussian Networks (GNPL), which is engaged in the online gaming business, to explore a potential public issue and listing of equity shares of GNPL (including by way of offer for sale of equity shares of GNPL held by the Company),” said Delta Corp in its BSE filing. The company further said the fundraising by GNPL would enable it to raise resources for the expansion of its business and unlock value for the shareholders of the company.

During the quarter Waterways Shipyard Private Limited (WSPL), an associate company of the Delta Corp, has agreed to subscribe to 50% of the paid-up equity share capital of WSPL Containers Private Limited (“WCPL”). WCPL was incorporated on 30th November 2021. WSPL became an associate company of Delta Corp in the last financial year and is currently engaged in the business of owning and operating a shipyard in Udupi, Karnataka.

Also read: Delta Corp net sales double, loss narrows to Rs 22 crore in Q2

Delta Corp said the group is debt-free and would have adequate liquidity available to honour its liabilities and obligations, as and when due. “The management will continue to monitor any material changes to its COVID-19 impact assessment, resulting from the future economic conditions and future uncertainty, if any,” the company said in the stock exchange disclosure.

The Company said the entire casino industry in Goa has made a representation to the Government of Goa, seeking a waiver/reduction / proportionate payment mechanism for casino licence fees for the period of shut down. The casinos were shut down from March 2020 to October 2020. During the current financial year also, consequent to the lockdown due to the second wave of pandemic casinos were shut down from March-April 2021 till September 2021.

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