Delta Corp Ltd. – Results – Financial Results 23/07/2018

Delta Corp has announced its Q1FY19 results on 23.07.2018. Let us see how the company has performed as compared to its last quarter.

Delta Corp Consolidated QoQ Performance Review

               Qtr        30.03.2018    30.06.2018
            Revenue           180 Cr       195 Cr
            Expense           114 Cr       131 Cr
       EBITDA Margin           41%       37%
              PAT           45 Cr       41 Cr
             EPS          1.72 Cr      1.55 Cr
   P/E( at CMP=227)
on 24.07.2018
                    38

Segment wise revenue(Cr)

          QTR     30.03.2018       30.06.2018 Growth
        Casino        163 Cr          176.7 Cr     8%
  Online Gaming       33.54 Cr         39.03 Cr    16%
     Hospitality                 21.88 Cr         22.72 Cr     4%
   Sales after GST       171 Cr          187 Cr      9%

Source: BSE
Key Notes

1) The Company P/E is calculated by taking EPS of FY18.
2) The EBITDA Margins have gone down due to the Increased offshore and onshore casino license fees for the Group. As a result, the impact of license fees in the current quarter is Rs. 14.44 Cr.
3) The Company has shown decent growth of 9% QoQ basis in terms of Revenue.
Let us see how the company has performed in the last 3 years

    FY         15-16        16-17      17-18
  Revenue           382 Cr        460 Cr        636 Cr
  Expense         332 Cr        362 Cr        408 Cr
  EBITDA      Margin           33%          36%           43%
  PAT          46 Cr          84 Cr        151 Cr
  EPS          1.66          3.19          5.92
 P/E( at CMP=280)          168           88           47
  PEG(<1)         0.95          0.52

Key Notes
a
) Delta Corp is the only listed company to work in the field of Casinos and Online gaming.
b) The Company has shown tremendous growth in the last 3 years in terms of Revenue and PAT.
c) The Company is debt free.
d) The Company commands excellent EBITDA Margins of above 40%.
e) The Price of the stock has fallen from the highs of 400 to 215 in the last 3-4 months. So the stock is available at a good valuation. Many investors see current P/E of 38 as costly but we have to remember it is a growth stock so we will have to value it in terms of PEG ratio and anything less than 1 is a value buy.

Disclaimer: I have a personal investment in the stock. This information is only for the purpose of education and not to be construed as an investment advice.

    Excellent results on YoY basis shown by Delta Corp. The Margins have got down a little bit on QoQ basis but the performance in terms of revenue growth is excellent.