In a special edition of ‘News Par Views’ with Zee Business Managing Editor Anil Singhvi, Delta Corp’s Chief Financial Officer Hardik Dhebar pointed out the spread of Omicron and Assembly polls in Goa as the reasons for the muted fourth-quarter earnings for the financial year 2021-22 (Q4FY22). 

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In Q4FY22, the company’s consolidated net profit slipped by 17 per cent to Rs 48 crore as compared to Rs 58 crore in the previous year’s same quarter, while its revenue grew marginally by over 3 per cent to Rs 218 crore as against Rs 211 crore a year-ago quarter. 

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According to Dhebar, “January was a washout month due to restrictions led by new covid variant Omicron, followed by Assembly elections in Goa in February amid which a model code of conduct was imposed in the state, also impacted the business of the company somehow.” 

Lion share of Delta Corp’s business is in Goa and the group has huge numbers of casinos and gaming centres in the state and a major chunk of its revenue comes from the same.  

The footfall in March and April has improved over the previous two months 2022, he added.   

The company could report almost the same or marginal growth in the first quarter of FY23 as that of Q4FY22, mainly due to a domestic cricket tournament Indian Premier League. He however, termed that it will be a steady quarter. 

The company’s EBITDA margin witnessed a maximum ebb as it declined by nearly 600 basis points to 31.6 per cent from 37.5 per cent year-on-year. Dhebar blames this decline on employee costs.  

In Q4FY21, the company saw attrition, cost-cutting, low salaries, and less marketing and promotional expenses pushing the margin to be around 38 per cent, this was done mainly amid covid impact and lockdown, as the company was nonfunctional for most of the months in 2021, Dhebar explained.  

The same has been reversed in Q4FY22, he further said, as the company has been hiring new positions, increments of employees are happening, and have also increased marketing and promotional budget. 

He also said as planned the company is most likely to file a DRHP (Draft Red Herring Prospectus) next month with the Securities and Exchange Board of India to list its gaming arm on the exchanges.