homeearnings NewsDelta Corp stock falls 24% since Q1 results, firm to release Q2 earnings today

Delta Corp stock falls 24% since Q1 results, firm to release Q2 earnings today

During the June quarter of FY24, Delta Corp had reported a 19% rise in profit as higher demand for casino gaming more than offset climbing costs. The stock has since plunged 24%. During the last one year, the scrip has lost 34% and is down 33% so far this year.

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By Meghna Sen  Oct 11, 2023 12:04:26 PM IST (Published)

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Delta Corp stock falls 24% since Q1 results, firm to release Q2 earnings today
Shares of Delta Corp are in focus in trade Wednesday, October 11, ahead of the casino operator's September quarter (Q2FY24) results that will be released today. Delta Corp shares have tumbled 24% since the company declared its numbers for the June 2023 quarter (Q1FY24) on 25 July.

The scrip settled at Rs 189.15 on July 25 and was trading 0.56% higher at Rs 143 during today's session. Delta Corp shares have lost 34% in the last one year and is down 33% so far this year.
Technically, the 14-day relative strength index (RSI) of the Delta Corp stock stands at 27.8, signaling it's trading in the oversold zone. This implies that stock may rebound. The stock has a beta of 1.4, indicating very high volatility in a year.
Delta Corp shares are trading higher than the 5 day and 10 day moving averages but lower than 20 day, 50 day, 100 day and 150 day and 200 day moving averages.
The company recently received tax notices totalling Rs 16,822 crore from the Directorate General of GST Intelligence. This demand is for the period between July 2017 and March 2022.
The first notice, for Rs 11,140 crore has been raised directly against Delta Corp. The other notice, for Rs 5,682 crore has been raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises.
In an exchange filing, Delta Corp said that this GST demand is based on gross bet value and not gross gaming value. It plans to pursue legal remedies to challenge this order. It has also pointed out that such tax demands are not a company-specific problem, but an industry-wide phenomenon.
The gaming and casino firm reported a 19% growth in its first-quarter profit as higher demand for casino gaming more than offset climbing costs. Its consolidated net profit for the quarter ended June 30 rose to Rs 67.9 crore from Rs 57 crore a year earlier.
Other than Delta Corp, TCS, National Standard (India), Signatureglobal (India), Samhi Hotels, Zaggle Prepaid Ocean Services, Plastiblends India, Justride Enterprises, and Sanathnagar Enterprises will also announce their Q2 results today.

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