Delta Corp Shares Fall 5% After Q3 Profit Decline
The online gaming firm's net profit fell 59.3% year-on-year to Rs 34.5 crore in the quarter ended December, according to an exchange filing.
Shares of Delta Corp. fell on Wednesday after third-quarter consolidated profit and revenue declined.
The online gaming firm's net profit fell 59.3% year-on-year to Rs 34.5 crore in the quarter ended December, according to an exchange filing.
Delta Corp. Q3 FY24 Results: (Consolidated, year-on-year)
Revenue down 15.3% to Rs 231.7 crore.
Ebitda fell 45.6% to Rs 55.7 crore.
Margin at 24.03% vs 37.41%.
Net profit down 59.3% to Rs 34.5 crore.
Delta Corp.'s holding company and its two subsidiaries received show cause notices from the Directorate General of GST Intelligence, Hyderabad, for the alleged short payment of goods and services tax amounting to Rs 16,822.9 crore in September.
In October, another subsidiary also received a show cause notice from the Directorate General of GST Intelligence, Kolkata, for a payment of Rs 6,384.3 crore.
These demands by the authorities are "arbitrary in nature and contrary to the provisions of the law", Delta Corp. said. The company said it will challenge the demands, as it has good ground to defend these notices.
Shares of the company fell as much as 5.01%, the lowest since Dec. 29, 2023, before paring loss to trade 2.66% lower as of 9:44 a.m. This compares to a 0.03% decline in the NSE Nifty 50.
The stock has fallen 29.68% in the last 12 months. Total traded volume so far in the day stood at 3 times its 30-day average. The relative strength index was at 50.52.
The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies a downside of 29.6%.