Delta Corp Ltd. conducted their Q3 FY23 earnings conference call on 18th January 2023
Here are the key highlights ππ»ππ»ππ»
Here are the key highlights ππ»ππ»ππ»
β’ Overview:
- Dec 21β was a base, which is not comparable as regards to current period as it was only for part of the year that the co. was operational in that financial year due to COVID
- Dec 21β was a base, which is not comparable as regards to current period as it was only for part of the year that the co. was operational in that financial year due to COVID
- And in the month β in the quarter of Dec 21β, not all the expenses were at their pre-COVID level which currently are back to pre-COVID levels
- So all things considered the margins are not subdued. They are infact better if we compare the same kind of cost for Dec 21β
- So all things considered the margins are not subdued. They are infact better if we compare the same kind of cost for Dec 21β
β Revenue growth Q-on-Q may not be seen as the co. believes they have step up growth format where they reach a certain no. after breaking out a level, stay there for couple of quarters and then grow
- Co. is waiting for the budget to get over after which it will launch its IPO
- Co. is waiting for the budget to get over after which it will launch its IPO
β’ Segments:
- Gaming business demonstrated robust character & co. believes with the new vessel coming, co. should be on a very good trajectory
- Gaming business demonstrated robust character & co. believes with the new vessel coming, co. should be on a very good trajectory
- Online business gets lesser traffic generally during holiday season with festivals like Diwali, Dussehra and last week of Dec as people donβt log into online gaming sites that much
- However, marketing spend during this quarter is more to maintain the run rate and keep the traffic on. Hence online business saw some growth in the quarter
β Hospitality has always been a complementing business to the gaming business of the co. Co. believes they are in a happy situation as its not the core business but its contributing at operating levels
β’ Financials:
- Co. is at 35% EBITDA margins & mngmt. believes the margins are only going to improve from here
- Co. is at 35% EBITDA margins & mngmt. believes the margins are only going to improve from here
β’ Capex:
- With the process if building new vessel, which will come into operation in the coming FY by 3rd quarter. The total cost is going to be about Rs250cr. Out of which Rs. 120-150cr is already spent & another Rs100cr. will be spent
- With the process if building new vessel, which will come into operation in the coming FY by 3rd quarter. The total cost is going to be about Rs250cr. Out of which Rs. 120-150cr is already spent & another Rs100cr. will be spent
β With regards to Deltin Town, not a large set of expense has happened as yet. After the final approval, co. will spend a large amount of money
- Co. is currently sitting on Rs650cr cash
- Co. is currently sitting on Rs650cr cash
β’ Capacity:
- Co. is operating at a near optimum capacity when it comes to peak hours & in weekends with weekends getting extended starting from Thursdays
- However, difficult to know capacity as its a 24-hr operation & during balance time of the day its underutilised
- Co. is operating at a near optimum capacity when it comes to peak hours & in weekends with weekends getting extended starting from Thursdays
- However, difficult to know capacity as its a 24-hr operation & during balance time of the day its underutilised
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