Shares of Delta Corp slumped over 6 percent as the company’s quarterly numbers and operational performance disappointed investors.
At 10:18am, shares of the casino company were trading at Rs 202.95, down 3.9 percent, on the BSE. The stock has fallen 28 percent in the past one year and is up merely 1 percent in the past three years.
The scrip will face resistance at Rs 215.90 and is seen drawing support from Rs 207.35-level, as per Moneycontrol website.
Delta Corp is one of the five stocks that have been put on ban under the F&O segment today as they have crossed 95 percent of the market-wide position limit as per NSE regulations.
On a consolidated basis, the company’s net sales rose to Rs 273.34 crore in the quarter ended December as compared to Rs 247.22 crore a year ago.
The casino gaming division and online skill gaming division witnessed an uptick in revenues during the quarter. Its net profit grew to Rs 84.82 crore in the reporting quarter from last year’s Rs 78.38 crore.
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However, the casino player’s operational performance weighed on the stock. Its operating margin dropped to 37.43 percent in the December quarter from last year’s 43.35 percent.
Higher raw material costs along with increase in employee benefit expenses and license fees and registration charges dragged the margin lower.
The company has operations in three distinct Indian locations—Goa, Sikkim and Daman—and at Nepal.
CFO Hardik Dhebar told CNBC-TV18 in an interaction today that Delta Corp has cash worth Rs 650 crore on their books, and that it has made a cash profit of Rs 100 crore in the third quarter for the first time.
Online gaming has been historically profitable for the company and it will continue to invest in marketing and sales of this segment.
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