Shares of casino and hotel operator Delta Corp slid more than 4% from intra-day highs on Wednesday (October 12) despite declaring yesterday about recording the highest revenue and profit for H1FY23. The company’s consolidated net profit stood at Rs 68.25 crore in the September quarter this year while during the same period last year the company had a net loss of Rs 22.57 crore.
The stock opened with a 2.3 percent gain, reaching the day’s high of Rs 223.2 but started to fall thereafter and by 11.05am the stock was down by 2.1 percent to be at Rs 212 which is 4% lower from the intra-day high.
Earlier this year in June, Delta Corp’s poker and rummy company Deltatech Gaming had filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs. 550 crore through an Initial Public Offering (IPO) and received the approval earlier this month.
The Goods and Services Tax (GST) rate of 28% on online gaming and casinos has also affected sentiments for Delta Corp’s stock. Since the start of this year the stock price has fallen by more than 17%. But despite it the company registered the highest revenue of Rs. 651.93 crore for the half-year of the financial year 2022-2023 of which the net profit amounted to Rs. 125.38 crore. The company’s management said. “The casino business operating out of Goa right from July 1, 2017, has been paying a 28 percent GST. So as far as we are concerned, there will not be any impact from the GST perspective.”
Delta Corp is the only gaming and hospitality company in India that is listed on a stock exchange and the chairman of the company, Jaydev Mody, gave credit for the growth of the company for the past quarterly performance to the surge in domestic activities in the area.