Delta Corp's show cause notices with regards to GST claims worth nearly ₹23,000 crore to ₹24,000 crore will be heard next month, CFO Anil Malani told CNBC-TV18 in an exclusive, post-earnings interaction.
The company's net profit during the December quarter fell close to 60% year-on-year. Revenue for the quarter was also down by 15.5%. Malani attributed the revenue drop to the first quarter since the revision in GST rates.
"This is the first quarter from when the new GST (Collecting 28% GST on chips sold to customers) regime kicks in," Malani said. "As expected, before you even play, you are down 28% and that is something the customers did not see much value," he added.
Delta Corp's CFO also said that 55% of Delta Corp's overall revenue for the October - December quarter came in the month of December itself.
Delta Corp's core casino and online gaming business also dragged during the quarter, with revenue declining 18% and 9% respectively from the year-ago quarter.
The company had planned on taking its online gaming division public, but Malani said that the plan is currently put on hold considering the ongoing GST uncertainty. He said that he would wait for more clarity on this issue before a decision on the IPO is taken.
Besides the results, the company also mentioned that it has made equity investments in three of its subsidiaries to the tune of ₹677 crore. These subsidiaries have pending GST dues worth over ₹11,000 crore.
However, the company has made no provisions against any potential impairment as it believes that the tax demands are arbitrary and that they have a strong case to defend themselves.
On the flip side, the company's hospitality business grew 8.4% from last year during the December quarter.
Delta Corp's shares fell to a three-year low in October last year after a slew of GST demands for the company and its subsidiaries rose to ₹23,200 crore.
Shares of Delta Corp are currently trading 2.7% lower at ₹146.5.
(Edited by : Hormaz Fatakia)
First Published: Jan 10, 2024 9:32 AM IST
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