Delta Corp confident of shifting growth momentum; surpasses April revenue in 10 days

Delta Corp will easily surpass pre-COVID revenues, Hardik Dhebar, group chief financial officer (CFO), told CNBC-TV18. Dhebar also discussed the outlook for FY22 and the road to recovery post unlock.

Delta Corp, a gaming and hospitality company reported earnings for the September-ended quarter yesterday, October 11. The company has seen a big spike in revenue but on a very low base owing to the lockdown and casinos being shut last year. The company's consolidated net loss narrowed at Rs 22.57 crore in the current quarter (Q2FY22). Delta Corp had posted a net loss of Rs 28.93 crore in the quarter-ended June 2021 and a net loss of Rs 54.91 crore in the year-ago period. The company witnessed a revenue increase of 94 percent, at Rs 74.72 crore in the current quarter on a year-on-year basis.

“With the kind of vaccination rate and a hope that there will be no third wave (of COVID-19) as such and come November-December, things should be even better. Therefore, with the current run rate and the trajectory that we are in, we would easily surpass the pre-COVID level in terms of revenue,” Dhebar said.

On business, he said, “On an average of 10-12 days of operations we have been able to achieve a revenue of Rs 40 crore which is as good as the full month’s operation, that is of April. So the trend is very robust and strong.”

“However, there is COVID-19 related restriction of 50 percent capacity on the ship, but we have a mechanism to filter out the kind of crowd that we encourage to come on board. So we have our Club Deltin loyalty program and our regulars to the casino. So rather than promoting it and encouraging the walk-ins, we would rather have the serious gamers occupy the space. Thereby we compensate the value for the volumes that we would probably be losing out on, but revenues keep catching up,” said Dhebar.

For the entire management interview, watch the video