Q3-FY24 Result Analysis of Delta Corp. Ltd

Delta Corp. Ltd. Q3 of FY24

(Methodology: Red=Decrease, Green=Increase)

Analysis

Revenue from Operation

1. Q3-FY24: ₹231.74 Crores, decreased by 14.4% from Q2-FY24 (₹270.59 Crores).
2. Y-o-Y: Decreased by 15.2% from Q3-FY23 (₹273.37 Crores).
3. 9M-FY24: ₹775.13 Crores, a Y-o-Y decrease of 2.3% from 9M-FY23 (₹793.61 Crores).

There is a significant Q-o-Q & Y-o-Y decrease in revenue, indicating potential challenges in the company's operations.

Operating Profit

1. Q3-FY24: ₹36.8 Crores, decreased by 54.2% from Q2-FY24 (₹80.39 Crores).
2. Y-o-Y: Decreased by 56.4% from Q3-FY23 (₹84.48 Crores).
3. 9M-FY24: ₹194.98 Crores, a Y-o-Y decrease of 18.4% from 9M-FY23 (₹238.94 Crores).

Operating profit has seen a significant decline both Q-o-Q & Y-o-Y, indicating challenges in cost management or a decrease in overall profitability.

Operating Profit Margin

1. Q3-FY24: 15.9%, a decrease of 138 basis points (Bps) from Q2-FY24 (29.7%).
2. Y-o-Y: Decreased by 150 Bps from Q3-FY23 (30.9%).
3. 9M-FY24: 25.2%, a Y-o-Y decrease of 344 Bps from 9M-FY23 (26.5%).

The decline in operating profit margin indicates reduced profitability relative to revenue, possibly due to increased costs or inefficient operations.

Net Profit

1. Q3-FY24: ₹34.48 Crores, decreased by 503 Bps from Q2-FY24 (₹69.44 Crores).
2. Y-o-Y: Decreased by 593 Bps from Q3-FY23 (₹84.82 Crores).
3. 9M-FY24: ₹171.83 Crores, a Y-o-Y decrease of 183 Bps from 9M-FY23 (₹210.2 Crores).
The substantial decrease in net profit indicates challenges in maintaining bottom-line profitability.

Net Profit Margin 

1. Q3-FY24: 14.9%, a decrease of 108 Bps from Q2-FY24 (25.7%).
2. Y-o-Y: Decreased by 161 Bps from Q3-FY23 (31.0%).
3. 9M-FY24: 22.2%, a Y-o-Y decrease of 43 Bps from 9M-FY23 (26.5%).

Similar to the operating profit margin, the decline in net profit margin suggests reduced efficiency in converting revenue to net income.

Earnings Per Share (EPS)

1. Both Basic & Diluted EPS show a significant decrease Q-o-Q & Y-o-Y.
2. The decline in EPS indicates reduced earnings available to each shareholder.

Overall Analysis & Suggestions  

1. Delta Corp Ltd. is facing challenges in both revenue generation & profitability.
2. The decline in operating profit & net profit margins indicates potential operational inefficiencies or increased costs.
3. The reasons behind these declines, such as changes in market conditions, cost structures, or management strategies. Considering the fact that gaming industry in India and the hospitality industry expecting a bit of soreness but still growing persistently.
4. The company should highly consider to include cost-cutting measures, operational improvements, or strategic adjustments to enhance overall performance.

Conclusion

According to Delta Corp, the holding company had goodwill that was recognized in prior years and amounted to ₹355.33 crore upon consolidation in the holding company's consolidated financial statements.
"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 stated.