Delta Corp Ltd Q3 FY23 Earnings Conference Call Insights

Key highlights from Delta Corp Ltd (DELTACORP) Q3 FY23 Earnings Concall

Q&A Highlights:

• [00:10:49] Abhishek Singhal from Naredi Investment enquired about the impact on DELTACORP from govt. rule drafted on online gaming. Hardik Dhebar CFO clarified that most of the requirements the govt. wants companies like DELTA for follow, DELTACORP is already 90% in compliance. So there’s not much of an impact.

• [00:14:27] Abhishek Singhal with Naredi Investment asked about the margin expectation in 4Q23 and FY24. Hardik Dhebar CFO answered that the company is already at about 34-35% EBITDA margin. DELTACORP expects to improve margins going forward.

• [00:14:30] Abhishek Singhal at Naredi Investment asked about the FY23 capex. Hardik Dhebar CFO replied that the company is in the process of building the new vessel. The total cost is going to be about INR225-250 crores. Of this about 120-150 crores is already spent.

• [00:17:21] Pritesh Chheda of Lucky Investment enquired about the supply addition in the water-based casino in Goa last year and next year. Hardik Dhebar CFO clarified that last year there was no addition. Next year, the company’s own capacity will go up about 2.5-3 times from existing capacity.

• [00:18:09] Pritesh Chheda with Lucky Investment also asked if there was any loss of market share YTD with regards to visitation. Hardik Dhebar CFO clarified that there was no loss of market share.

• [00:20:25] Pritesh Chheda with Lucky Investment enquired about 3Q23 visitation and spend numbers. Hardik Dhebar CFO answered that in 3Q, the company had around 150,000 guests. And the GGR per person was at about 18,000 per person which has come down to about 16,000 as the visitation has increased from 115,000 to 150,000.

• [00:21:06] Jiten Parmar of Aurum Capital enquired the reason behind hospitality revenue being down. Hardik Dhebar CFO replied that 1 crore up and down can happen, which is usual. So it’s not a dip since it’s a marginal shift YoY. Also, it’s not a core area for the company.

• [00:24:53] Niteen Dharmawat at Aurum Capital asked about 4Q23 shaping up vs. 3Q. Hardik Dhebar CFO answered that from a trend point of view, DELTACORP doesn’t think there is any change of momentum when 4Q is compared to 3Q.

• [00:26:46] Niteen Dharmawat at Aurum Capital queried about the IPO, if anything is planned during FY24. Hardik Dhebar CFO clarified that the company is in complete readiness of what’s required from its side. DELTACORP is only waiting for the budget to happen.

• [00:27:44] Dhwanil Desai of Turtle Capital enquired if the company expects growth in the range of 15-20% from FY25. Hardik Dhebar CFO said DELTACORP cannot give an exact number, but considering the company is going to be disrupting the market with new and better products, a larger growth number could be looked at.

• [00:36:12] Yash Dantewadia of Dantewadia Equity asked about any update on the Daman court case. Hardik Dhebar CFO answered that the company expects to see more movement on the case from next week onwards.

• [00:44:30] Chintan Mehta from Prudent Broking asked about the margin profile difference between land-based Casino and live Casino. Hardik Dhebar CFO clarified there’s not much difference. Land-based casino, if it’s of similar size, the margins can be better.

• [00:48:48] Randeep Sen from MAS Capital queried about the number of club Deltin numbers. Hardik Dhebar CFO answered that it’s a very dynamic number. The company expects it should be in the similar range of 6,000 a year ago.