Mumbai-based casino and gaming company Delta Corp Ltd on Tuesday (January 9) reported a 59.3% year-on-year (YoY) decline in net profit at ₹34.5 crore for the third quarter that ended December 31, 2023.
In the corresponding quarter last year, Delta Corp posted a net profit of ₹84.8 crore, the company said in a regulatory filing. The company's revenue from operations declined 15.3% to ₹231.7 crore against ₹273.4 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA dipped 45.5% to ₹55.8 crore in the second quarter of this fiscal over ₹102.4 crore in the year-ago period The EBITDA margin stood at 24.1% in the reporting quarter compared to 37.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
In a footnote alongside its Q3 numbers, Delta Corp said that on September 27, 2023, the holding company and its two subsidiary companies received show cause notices from the Directorate General of GST Intelligence (DGGI), Hyderabad, for alleged short payment of Goods and Services Tax (GST) aggregating to Rs 16,822.9 crore for the period July 1, 2017, to March 31, 2022.
On October 28, 2023, another subsidiary of the company received a GST show cause notice aggregating to Rs 6,384.32 crore for the period July 1, 2017, to November 30, 2022, from DGGI, Kolkata.
Delta Corp said the demands made by the authorities on the gross bet value/ gross face value as against gross gaming revenue/gross rake amount has been an industry issue and multiple representations have been made by the industry participants to the government in this regard.
"Holding company/ subsidiary companies have filed writ petitions and have obtained stay orders from respective High Courts. Without prejudice, the holding company and its three subsidiaries, based on legal assessment, are of the view that all the above notices and the tax demands are arbitrary in nature and contrary to the provisions of law," Delta Corp said in a regulatory filing.
The companies will pursue all the legal remedies available to them to challenge such tax demands and the related proceedings, it informed.
Considering the fact that the holding and subsidiary companies have a good ground to defend against the said show cause notices, the group management believes that until the GST matter gets effectively concluded, "no provision for impairment is currently required towards Goodwill and other assets related to the three subsidiaries, as reflected in the consolidated financial results", it added.
The results came after the close of the market hours. Shares of Delta Corp Ltd ended at ₹150.70, up by ₹0.30, or 0.20%, on the BSE.
(With inputs from PTI)
(Edited by : Shoma Bhattacharjee)
First Published: Jan 9, 2024 8:10 PM IST
