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Delta Corp Limited Q3 FY24 Earnings Conference Call Summary
Submission Details • Date of submission: January 15, 2024 • Conference call date: January 11, 2024 • Submitted to: National Stock Exchange of India and BSE Ltd
Key Executives Present • CFO: Anil Malani • COO: Manoj Jain
Impact of New GST Regulations • GST now charged on gaming chips instead of gross gaming revenue (GGR). • Resulted in increased costs for the company. • Decline in visitation numbers and revenues attributed to: • Seasonal factors (World Cup, Diwali) • New GST regulations • Recovery noted in December, returning to normal operational levels.
Financial Performance • Net revenue approximately 6% lower due to increased GST costs. • GGR stable unless visitations decrease. • 6% drop in visitations led to a total of around 12% lower revenue year-over-year. • Intra-group transactions also impacted revenue.
Capital Expenditures • Rs. 280-290 crores allocated for a new ship; Rs. 175 crores already invested. • New ship expected to be operational by Q3 2024. • Rs. 130 crores invested in land for an integrated resort project, with plans for a theme park.
GST Payments and Customer Packages • Estimated additional GST of Rs. 7-8 crores for offline business this quarter. • Changes in customer packages post-GST: • Removal of promotional gaming offer. • Introduction of a 10% discount for online bookings.
Competitive Landscape • Increased GST payments: Rs. 58 crores this quarter vs. Rs. 50 crores last quarter. • Online GST payments rose from Rs. 6 crores to Rs. 18 crores. • Delta Corp adjusting pricing strategy to retain customers amid competition.
Legal Matters • Awaiting Supreme Court hearing on GST-related legal cases. • Sufficient cash flow to support ongoing projects despite performance dip.
EBITDA Margins and Future Outlook • Targeting EBITDA margin of 35% to 36%, down from 41%. • Optimism about recovering margins with increased revenue from the new ship. • Real estate strategy includes partnership with Peninsula Land for redevelopment projects.
Concerns Raised • Increasing costs and delays in the new ship project due to expanded scope. • Strategic direction questioned regarding expansion into hotels and other ventures. • Assurance that the casino business remains strong and supportive of growth.
Closing Remarks • Confidence in future performance and ongoing projects. • Healthy financial position and strategic value in recent investments, particularly in real estate.
Delta Corp Limited Q1 FY24 Earnings Conference Call Summary
Date and Submission • Date of Call: July 27, 2023 • Submission: Transcript submitted to National Stock Exchange of India and BSE Ltd on July 31, 2023.
Key Highlights • Record Revenue: ₹338 crores for Q1 FY24. • Increased Footfall: 25% year-on-year and 20% quarter-on-quarter increase in visitations, attributed to improved infrastructure in Goa.
Management Insights • GST Regulations: Uncertainty regarding new GST regulations affecting casino operations. • Casino License Fees: 75% of disputed fees paid; remaining 25% contingent on Supreme Court decision expected in October. • Environmental Clearances: Pending for new resort; minimal spending on the project until clarity is achieved.
Q&A Session Highlights • Daman Case: Next hearing scheduled for August 3rd; optimism about being heard. • GST Concerns: Ongoing rumors addressed; management committed to providing timely updates. • IPO Plans: On hold until clarity on GST is achieved. • Employee Expenses: Rising costs due to online segment expansion; corrective actions underway.
Strategic Outlook • Investment Strategy: To be reassessed based on macroeconomic conditions. • Profitability Expectations: Improved profitability anticipated by Q3; strong current trends noted.
Conclusion • Positive Industry Outlook: Management expresses optimism about Delta Corp's growth prospects and resilience in the gaming industry.
Delta Corp Limited Q4 FY2022-23 Conference Call Summary
Key Highlights • Date of Call: April 13, 2023 • Moderator: Alpesh Thacker, Antique Stock Broking • CFO: Hardik Dhebar
Financial Performance • Surpassed INR 1,000 crores in gaming revenue for the first time. • Total revenue exceeded INR 1,200 crores. • 50% increase in EBITDA. • Net profit rose by over 150% compared to the previous year.
Business Developments • Positive growth in gaming and online sectors due to: • Regulatory clarity. • Increased footfall in Goa from a new airport. • Plans for an IPO are back on track after previous delays.
Operational Insights • Vessel Delay: One-month dry dock maintenance led to a revenue loss of INR 50-60 crores. • Visitor count for the quarter: 125,000. • Integrated resort development pending environmental clearances.
Online Gaming Sector • Online revenue growth of INR 23 crores attributed to marketing efforts. • Business is not seasonal; strategic adjustments made since October 2021.
Future Projections • New vessel expected to increase capacity by 2.5 to 3 times. • Significant capex for entertainment city project expected in FY’25 with operations starting around FY’27.
Real Estate and IPO • Only real estate project: small residential development in Goa, projected sales of INR 250-300 crores in 18-24 months. • Gaming IPO on hold due to regulatory issues, potential dilution of 25-30%.
Regional Operations • Nepal: Achieving a run rate of INR 4 crores/month post-COVID. • Sikkim: Stabilized at INR 2-2.5 crores/month, doubling pre-COVID performance.
Closing Remarks • CFO addressed operational challenges, financial projections, and strategic insights. • Anticipated no capacity constraints for the next several years.
Delta Corp Limited Q3 FY2022-23 Conference Call Summary
Overview • Date of Call: January 18, 2023 • Submitted Transcript: January 23, 2023 • Key Speaker: CFO Hardik Dhebar
Company Performance • Comparison to Previous Year: • December 2021 quarter affected by COVID disruptions. • Operational expenses returned to pre-COVID levels. • New Vessel Launch: • Expected to enhance capacity and market penetration.
Financial Highlights • EBITDA Margins: • Current margins at 34-35%, expected to improve to 37-38%. • CAPEX: • Total investment for new vessel: 225-250 crores (120-150 crores spent).
Online Gaming Segment • Regulatory Compliance: • Over 90% compliance with proposed government regulations. • Optimism about regulations providing industry clarity. • Revenue Trends: • Seasonal fluctuations noted, but revenue increased from the previous quarter.
Hospitality Sector • Revenue Fluctuations: • Minor fluctuations due to non-core nature and event timing. • Overall revenue growth of 42% over nine months.
Casino Operations • Capacity and Utilization: • No new capacity added in Goa; new vessel will increase capacity significantly. • Current vessels operating near peak capacity during busy times. • Guest Statistics: • Q3 saw around 150,000 guests; average spend per guest decreased.
Future Growth Potential • Market Opportunities: • Untapped market in Goa; increased capacity could lead to significant growth. • Revenue Projections: • Potential revenue growth of 2x to 2.5x as operations reach optimum utilization.
Additional Insights • New Resort Project Cost: • Estimated at 25,000 to 30,000 crores, managed in phases. • Online Gaming Economics: • Increased marketing costs impacting profitability; positive unit economics expected. • Legal Updates: • Daman court case formalities complete; positive outcomes anticipated.
Conclusion • Overall Outlook: • Positive trajectory and growth outlook emphasized by CFO Hardik Dhebar. • Call Closure: • Concluded with thanks from the moderator.