July 10, 2024
New Delhi, India
Delta Corp Q1 Results
Delta Corp’s share price fell by over 4% on Wednesday following the release of its weak Q1 results for FY25. The company reported a significant decline in net profit, which dropped by 67.6% to ₹21.68 crore from ₹68 crore in the same quarter last year.
Weak Q1 Financial Performance
Delta Corp shares opened 4.7% lower at ₹136.10 per share on the BSE, compared to the previous close of ₹142.85. The sharp decline in share price was driven by disappointing financial results for the first quarter of FY25.
The company’s consolidated net profit for Q1FY25 fell to ₹21.68 crore, a 67.6% decrease from ₹68 crore in the year-ago period. Revenue from operations also declined by 30% year-on-year (YoY), dropping to ₹181 crore from ₹259 crore.
Decline in EBITDA and Margins
At the operational level, Delta Corp’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the June quarter decreased by 68.2% to ₹30.5 crore, compared to ₹95.8 crore a year ago. The EBITDA margin contracted significantly to 16.9% from 36.9% YoY, indicating increased cost pressures and reduced profitability.
Dividend and Board Appointments
Despite the weak financial performance, the company’s board recommended a final dividend of ₹1.25 per share. Additionally, the board approved the appointments of Tara Subramaniam and Pankaj Razdan as Additional Directors designated as Non-Executive Independent Directors for a tenure of five years.
Share Price Movement
Delta Corp’s share price has experienced a rally recently, with the stock rising over 18% in the past month. However, the shares are down more than 41% over the past year, reflecting broader challenges faced by the company.
As of 9:20 AM on Wednesday, Delta Corp shares were trading 1.47% lower at ₹140.75 apiece on the BSE.
Conclusion
The significant decline in Delta Corp’s Q1 financial performance has impacted investor sentiment, resulting in a sharp drop in its share price. The company faces challenges in improving its profitability and operational efficiency amidst a competitive gaming and hospitality market.
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