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Delta corp on winning spree. Posts fantastic Q4FY19 numbers

Delta corp on winning spree. Posts fantastic Q4FY19 numbers

Delta Corp Limited was incorporated in the year 1990. It is the only listed company in India engaged in the casino and gaming industry. The company’s primarily engaged in gaming and hospitality segment. The company operates its gaming and hospitality segment under the name of Deltin. Delta Corp is the leading gaming company capturing the market through its 5 casinos located in Goa, Sikkim and an integrated casino resort in Daman. The company operates 1,800 gaming positions. Its subsidiaries include Delta Pan Africa Limited and Atled Technologies Private Limited. Further, they have ventured into fast-growing online gaming segment by acquiring Gauss Networks which operates an online poker site called Adda52.com, rummy site as well as an online fantasy sports site.

Market Data:

CMP

259

BSE Code

532848

NSE Code

DELTACORP

Market CAP

Rs. 6989 crores

52 Week High

301.35

52Week Low

198.10

  1. Net profit: 45.25 crores
  2. P/E: 52x
  3. ROE :13%
  4. ROA:32%
  5. EPS: 7.29
  6. ROCE: 15.1%
  7. ROIC: 9.4%

 

Shareholding pattern

Shareholding pattern

%

Promoters

32.77%

Mutual Funds

2.65%

Alternative Investment Funds

0.38%

Foreign Portfolio Investor

23.40%

Banks

0.16

Non-Institution Investors

40.64%

Shareholding pattern

Shareholding pattern of Delta Corp
The shareholding pattern of Delta Corp

 

Financial for the year:

  • Revenue from operations in Q4FY19 increased by 19% on a YoY basis it stood at Rs. 204.29 crores as compared to Rs. 171.58 crores in Q4FY18. Total income for Q4FY19 stood at Rs. 213.53 crores as compared to Rs. 179.96 crores.

 

  • Revenue from gaming operations constitutes 77% i.e. Rs. 198.13 crores of the total revenue generated, it grew by 21% YoY in Q4FY19. The footfalls in hotels jumped 40% to 1, 20,000 in Q4FY19. The footfalls in casino increased by 36% from 3, 17,000 in FY18 to 4, 31,000 in FY19.

 

  • Revenue from online skill gaming was Rs. 37.22 crores i.e. 14% of the consolidated revenue. Hospitality and other operations revenue grew by 8% YoY it stood at Rs. 23.61 crores i.e. 9% of the consolidated revenue of the company. The hospitality segment incurred an EBITDA loss of Rs. 2.95 crores in Q4FY19.

 

  • EBITDA for the quarter stood at Rs 87.9 crores as compared to Rs. 67.5 crores in Q4FY18. EBITDA Margin for Q4FY19 stood at 43% against 39.3% YoY. The margins expanded by 370 bps YoY. The increase in the margins was mainly due to the recovery seen in the online gaming segment. The online gaming segment rose from 14% EBITDA margin in Q4FY18 to 24% EBITDA margin in Q4FY19.

 

  • The Government of Goa has notified the company the revised on-shore and off-shore casinos license fee in Goa. The earlier license fee for the group was Rs. 11 crore, Rs. 10 crores and Rs. 5 crores respectively. Now the revised license fees for on-shore and off-shore is Rs. 30 crores, Rs. 25 crores and Rs. 10 crores accordingly.

 

  • On March 6, 2019, Delta Corp acquired 15.52% stake (31,994 equity shares) in HalaPlay for Rs. 15.5 Crores. Further, as a part of the deal Gaussian Software (Delta Corp’s subsidiary) will transfer their fantasy sports division for additional 4.03% shares of Halaplay. Halaplay is the second largest fantasy sports game after Dream 11; they have a turnover of Rs. 2.98 crores with 2 million users at present. With the new investment in Halaplay and ongoing Cricket IPL, upcoming World cupT20, this deal can generate significant growth for Halaplay as well as Delta Corp. Out of the Rs. 15.5 Crores, Delta has paid 7.75 crores un till now.

 

  • On March 8, 2019, Delta Corp’s wholly owned subsidiary Gaussian Software entered into an agreement to buy 1,00,00,000 equity shares of Jalesh Cruises Mauritius (JCLM). The deal of purchase of equity shares is worth USD 10 million that will be completed by Gaussian Software in 3 tranches. Gaussian Software has already paid USD 5 million during the quarter and USD 3 million in the first week of April 2019. The balance USD 2 million will be paid by June 2019. The company will hold a 25% stake in JCLM. JCLM proposed to acquire cruise ships and operate cruise service. The cruise will have 25-30 casino tables for this Delta Corp will pay fixed fees of USD 5 per person to JCLM. The cruise will operate the first 8 months in India and 4 months in UAE.

 

  • On March 6, 2019, Delta Corp acquired 15.52% stake (31,994 equity shares) in HalaPlay for Rs. 15.5 Crores. Further, as a part of the deal Gaussian Software (Delta Corp’s subsidiary) will transfer their fantasy sports division for additional 4.03% shares of Halaplay. Halaplay is the second largest fantasy sports game after Dream 11; they have a turnover of Rs. 2.98 crores with 2 million users at present. With the new investment in Halaplay and ongoing Cricket IPL, upcoming World cup and T20, this deal can generate significant growth for Halaplay as well as Delta Corp. Out of the Rs. 15.5 Crores, Delta has paid 7.75 crores un till now.

 

  • Sikkhim Casino is one of the growth drivers after the opening of Pakyong Airport which has led to an increase in tourism in the state.

 

  • Net profit in Q4FY19 rose by 25% YoY from Rs. 45.25 crores in Q4FY18 to Rs. 56.72 crores Q4FY19.

 

Future Expectation:

  • The casino operation by Delta Corp in Marriot hotel Kathmandu in the Naxal region at Fair field will commence its operations in the next 2 months. This revenue generated from this deal will reflect in Delta’s books from FY20.

 

  • Deltin JAQK (a subsidiary of Delta Corp) will be going for dry docking for 15 to 20 days in April 2019-May2019.

 

  • The deal with Jalesh Cruises on 8th March, the company expects revenue of Rs. 25 crores to 30 crores by the end of FY20.

 

 

Financial Highlights

                                                                                                                                (In crores)

Particulars

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Change (YoY) (%)

Net Revenues

128.6

145.3

162.2

171.6

187.3

201.4

205.2

204.3

19%

EBITDA

45.3

65.5

68.7

67.5

65.4

76.2

85.5

87.9

30%

Net Profit (Adjusted)

22.3

43.3

44.7

45.3

41.4

48.1

50.5

56.7

25%

 

Net Profit: 

                                          (In crores)

Net Profit
Net Profit

 

Revenue:

     

Delta Corp Limited has reported a healthy set of numbers for Q4FY19, with revenue from operations up by 19% YoY at Rs. 204.9 crores. Also, the new deals with Jalesh Cruises and Halaplay have tremendous scope for growth in the upcoming years.

 

Click here to read the complete report:

Delta corp on winning spree. Posts fantastic Q4FY19 numbers

 

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