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Delta Corp Ltd Management Discussions

Jul 19, 2024|09:44:54 AM

Delta Corp Ltd Share Price Management Discussions



Global Economy Overview

In 2022, the global economy had recovered from the COVID-19 pandemic and the Russia-Ukraine conflict, but it is still experiencing some unprecedented crisis. Inflation reached multi-decade highs in a number of economies in 2021 as a result of pent-up demand, ongoing supply disruptions, and rising commodity prices, prompting central banks to aggressively tighten monetary policy in order to return inflation to their target levels. There are indications that the tightening of monetary policy is beginning to suppress inflation and demand, but its full impact will not be realised until 2024. As per the International Monetary Funds (IMF) April 2023 outlook, the global economy, which grew by 3.4% in 2022, is estimated to grow by 2.8% in 2023 and by 3.0% in 2024.

World Economic Output (%)

2022 2023P 2024P
World Output 3.4 2.8 3.0
Advanced Economies 2.7 1.3 1.4
United States 2.1 1.6 1.1
Euro Area 3.5 0.8 1.4
Japan 1.1 1.3 1.0
United Kingdom 4.0 (0.3) 1.0
Canada 3.4 1.5 1.5
Other Advanced Economies 2.6 1.8 2.2
Emerging Market and Developing Economies 4.0 3.9 4.2
Emerging and Developing Asia 4.4 5.3 5.1
China 3.0 5.2 4.5
India 6.8 5.9 6.3
ASEAN-5 (Indonesia, Malaysia, Philippines, Thailand, Vietnam) 5.5 4.5 4.6

P: Projected

Source: IMF World Economic Outlook April 2023

The financial instability of the gilt market in the United Kingdom and the recent failure of a few banks in the United States demonstrate that both banks and non-bank financial institutions are susceptible to failure. In both cases, governments and authorities acted promptly and have effectively managed the financial crisis. Europe is now facing with the difficult challenges of sustaining the economic recovery, combating inflation, and maintaining financial stability. Germany has been in recession for two consecutive quarters as a result of decreased consumer expenditure and consistent price increases caused by ongoing geopolitical tensions. However, a significant portion of the economic risk in Europe has been mitigated by a mild winter and a steep drop in natural gas prices. The advanced economies are expected to grow by 1.3% in 2023, after witnessing growth of 2.7% in 2022, and are further expected to grow by 1.4% in 2024.

Factors such as political instability, economic collapse, and deteriorating social conditions affected Sri Lanka, Nepal, Afghanistan, Myanmar, and Pakistan to an increasing degree. Sri Lanka, Nepal, and Pakistan are experiencing declining foreign exchange reserves and a balance of payment crisis, whereas Afghanistan and Myanmar are experiencing a dramatic deterioration in humanitarian conditions. In contrast, Chinas reopening in 2022, weakening global financial conditions, and fewer cycles of interest-rate increases have all contributed to the healthy beginning of 2023 for emerging markets. Going forward, emerging markets may outperform global markets as a result of the combination of strong regional growth projections and market valuation expansion potential backed by strong economic growth in India, China, and ASEAN countries. The emerging markets and developing economies, which increased by 4.0% in 2022, are predicted to surge by 3.9% in 2023 and 4.2% in 2024.

Indian Economy Overview

Indias economic momentum has been more resilient than expected, during last years tightening of the global and domestic financial environments.

According to the NSOs (National Statistical Office) second advance estimates, the Indian economy grew by 9.1% in FY 2021-22. The emphasis on capital expenditure in the Union Budget 2023-24 is expected to stimulate private investment, increase job creation, overall consumer demand and enhance Indias potential growth. The budget for capital expenditures for FY 2023-24 was announced to be Rs. 10 Lakh Crores, or 3.3% of the gross domestic product. According to NSOs Second Advance Estimates Report, Indias real GDP growth could approach 7% growth in FY 2023-24 if the expenditures are effectively implemented.

In order to control inflation, the RBIs (Reserve Bank of India) Monetary Policy Committee (MPC) ceased the rate increase cycle in April 2023 and maintained the repo rate at 6.5%. The MPC kept its "withdrawal of accommodation" position. Taking into consideration global and domestic factors, it is anticipated that headline inflation will moderate in FY 2023-24. The RBI expects consumer inflation to decrease to 5.2% in FY 2023-24, and its SPF (Survey of Professional Forecasters) report projects Indias real GDP to grow by 6% in FY 2023-24. Indias rising global profile is supported by a number of achievements, such as the unique World Class Digital Public Infrastructure of Aadhaar, CoWin, and UPI; the unprecedented scale and a proactive role in frontier areas, such as the accomplishment of climate-related goals, and the National Hydrogen Mission. Three megatrends - global offshoring, digitalisation, and the energy transition - are creating the foundation for the countrys unprecedented economic growth. According to the SBI Ecowrap report, by 2027, India is expected to surpass Japan and Germany to become the worlds third-largest economy. In addition, Indias GDP is projected to more than double by 2031, from its present level of US$ 3.5 trillion to over US$ 7.5 trillion.


The global market for casinos and gaming is fragmented due to the presence of several vendors. To achieve a competitive edge, vendors are implementing various growth strategies including investment in the development and extension of existing facilities. The casino and gaming segment would experience a robust growth in market share than the other gaming segments such as lottery, sports, betting etc. Due to privacy concerns with online platforms, a lack of technology adoption, and government regulations, offline gaming is a popular option for casino gaming in a number of countries across the globe. Consequently, the introduction of completely configurable self-service terminals or kiosks also contributes to the expansion of the offline segment. The global gaming market is estimated to increase at a CAGR (Compound Annual Growth Rate) of 11.3% from US$ 449.04 billion in 2022 to US$ 765.89 billion in 2027.

The market is further anticipated to increase at a 2.0% CAGR from US$ 239.22 billion in 2027 to US$ 847.54 billion in 2032.

The global market size for casinos and gaming is projected to increase by US$ 90.22 billion between 2022 and 2027 registering a CAGR of approximately 8.13% during the forecast period. North America is anticipated to account for 38% of the global markets growth over the forecast period. The increasing adoption of digital platforms and the trend towards legalising various forms of gaming are propelling the expansion of the regional market. In addition, vendors are expanding their sales channels by deploying more gaming terminals and forming partnerships with retailers, which is propelling the regional markets expansion. Casino owners and other gaming companies are introducing casino services to online platforms. These platforms offer a high level of security, and registration is quick and simple. Many companies are expanding their online platforms into regions and countries where land- based casinos are prohibited. These variables are anticipated to stimulate the expansion of the global casino gaming market.

By channel type, the global gaming market is divided into offline, online, and virtual reality (VR) channels. In 2022, the offline market was the largest channel type segment of the gaming market, accounting for 78.9% of the total market. Asia-Pacific dominated the global gaming market in 2022, accounting for 32.5% of the total, followed by North America, Western Europe, and the remaining regions. From 2022 to 2027, North America and Western Europe will grow at CAGRs of 32.2% and 22.2%, respectively, to become the fastest- growing gaming markets, followed by South America and Eastern Europe, where CAGRs are expected to be 8.3% and 1.7%, respectively.


Global Gaming Industry

According to a report by Newzoo, the global games market saw a modest decline in revenue in 2022, declining by 5.1% year-over-year (YoY) and recording US$ 182.9 billion in revenues. The global gaming industry is further expected to reach US$ 206.4 billion by 2025 by growing at a CAGR of 2.9%.

In 2022, mobile game revenues accounted for 50% of the global market, reaching US$ 91.8 billion. The total PC and console games accounted for another 50% of the total market revenue, reaching US$ 91 billion. The second-highest revenue total was generated by console games, which reached US$ 52.2 billion, declining by 3.4%

YoY. PC browser games declined by a rate of 14.8% YoY to US$ 2.3 billion. From 2021 to 2022, average playtime decreased by 23% across Steam, Xbox, and PlayStation. Increasingly, players are interacting with games on multiple platforms, particularly as cross-play functionality becomes more prevalent in the industry.

The ongoing evolution of mobile gaming privacy, particularly on iOS, contributed to the slower growth of the mobile segment. Mobile app developers, publishers, and marketers continue to face headwinds due to their limited ability to identify and track key customers. In addition, as the globe reopened fully after two years of lockdowns and disposable income became increasingly constrained by inflation, consumers spent less on mobile games. In other words, mobiles lower barrier to entry is also its lower barrier to exit.


In 2022, almost all global regions saw revenue declines, with the notable exceptions being Latin America and the Middle East and Africa. These two markets only accounted for 9% of the total revenue in 2022, but both experienced growth of 3.3% and 5.8%, respectively, due to the entry of new participants into the mobile gaming ecosystem and improved access to payment methods. However, the average expenditure in these regions remained minimal, so development in these regions could not compensate for the decline in mature gaming markets.

China and the United States were the two main spenders on a global scale, accounting for 49% of all consumer expenditure on video games. The Asia- Pacific market contributed US$ 84.8 billion of revenue in 2022, registering a decline of 8.9% YoY. Europe registered a decline of 2.4% YoY in total gaming revenues, reaching US$ 33.3 billion in 2022. North America experienced a decline of 2.5% in 2022, reaching US$ 49.7 billion in total revenues.


The gaming segment has been one of the M&E industrys fastest-growing segments and continues to exhibit robust double-digit growth. FY 202223 has been extremely positive from the perspective of regulation, with clarification on TDS, MEITYs online gaming framework, and the formation of a self-regulatory body. This segment will receive additional growth capital, which will facilitate innovation and consumer choice, resulting in market expansion through entry into new geographies, faster adoption, and various categories. The Rs.mobile-first phenomenon will sustain this increase in market growth.

A young consumer base, rising disposable incomes, the introduction of new sophisticated gaming genres with easier learning curves, internet affordability, the rapidly increasing number of smartphone and tablet users, the growth of the influencer economy, and lifestyle changes due to the COVID-19 pandemic all contribute to the popularity of gaming in India. According to the State of India Gaming Report FY 2021-22 by venture capital fund Lumikai, Indias aggregate gaming market was valued at US$ 2.6 billion in FY 2021-22. By 2027, the aggregate gaming market would reach US$ 8.6 billion.

Real Money Games (RMG) and NonReal Money Games (Non-RMG) are the two categories that make up the Indian online gaming market. Real- Money Gaming (RMG) are skill- based activity that can be played for real money. Non-RMG activities are those that do not involve real money. Currently, Rummy, Poker, and Fantasy are the most popular RMG activities. Based on the learning curve and level of difficulty, non-RMG games are classified as hyper-casual, casual, mid-core, and hard-core. In 2022, about 100-120 million RMG players were recorded. According to research by Niko Partners, India is projected to have 630 million gamers by 2026, generating US$ 1.4 billion in revenue, up from US$ 704.5 million in 2022.

As per the FICCI-EY Report, in 2022, primarily driven by the RMG segment and with over 100 million registered users, the online gaming market reached Rs.135 billion, representing a growth of 35% from the previous year. The number of online gamers in India increased to 421 million in 2022, with about 90 to 100 million of them being active gamers. Transaction-based game revenues grew 39%, while casual gaming grew 20% in 2022. Major growth drivers included increased awareness and better perception of online gaming, significant marketing spends and use of brand ambassadors and gaming influencers, ease of online payments such as UPI payments, and the use of data analytics by gaming companies that enabled a sharper focus on customer cohorts, enabling effective targeting, offers, and monetisation. Brands are currently preferring online gaming worlds for product launches, events, and novel monetisation opportunities. 5G and cloud gaming can facilitate subscription model adoption.

Due to the increasing popularity of rummy and fantasy sports, transaction-based game revenues exceeded Rs.100 billion in 2022, witnessing a 44% increase over the previous year. The rummy and poker gaming segment, was driven by a greater emphasis on user retention through data analytics, the acquisition of new audiences through increased marketing awareness, the increasing popularity of online tournaments with substantial prize money, and the creation of separate, focussed communities for each game to boost player engagement. Recently, the Indian government recognised eSports as a multi-sport event in December 2022. This distinction is anticipated to increase sponsorships and gamer participation. Approximately, 25% of online gamers in 2022 were paid players, a number that is growing by roughly 2 million per month.

Gaming Regulations in India

In recent years, online gaming has grown in prominence, particularly in India. With the expansion of the internet and mobile technology, it has become a vital industry in the country. With the gradual expansion of industry, there is an increased demand for regulation to ensure fair competition and consumer safety. In India, the legalisation of online gaming is accompanied by certain restrictions.

The Government of India has imposed restrictions on online betting and gambling. Under Entry 34, List II of the Indian Constitution, each state has the authority to regulate betting and gambling within its borders.

This has led to various Indian states adopting varying definitions of betting and gambling. The government has been planning on initiating a new era of responsible online gaming by establishing stringent guidelines to ensure the security of Digital Nagriks and the accountability of the online gaming industry. In March 2023, the Tamil Nadu assembly once more enacted the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Bill, 2022. The Bill seeks to prohibit online gambling games, including rummy and poker, as well as regulate online gaming.

Offline and online gaming are state subjects, and only states in India are entitled to formulate laws for gambling activities within their respective states. Goa and Sikkim are the only exceptions that have allowed offline gaming in their states, subject to the regulation of their respective state governments. The Goa Gambling Act allows five-star hotels to offer Rs.games of electronic amusement or slot machines under a licensing system. Under the provisions of a licence, table games and other forms of gaming may also be offered on offshore vessels. The gambling laws of Andhra Pradesh, Telangana, Assam, and Odisha do not contain the games of skill as exception and accordingly do not allow any game to be played for monetary stakes.

India amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (Amended Rules), on April 6, 2023, in order to implement a new legal framework for online games operators. The Amended Rules represent a significant turning point for the Indian online gaming industry. Through the Amended Rules, the Indian government has taken a decisive move towards protecting Indian gamers and their funds from online scams and frauds and thus promoting responsible gaming and safeguarding young and vulnerable users from online abuse and indecency.

Under the new regime, the online gaming intermediaries must now ensure that they do not host or permit a third party to host any online real money game on their platforms that has not been verified as a legal online real money game. For all online gaming activities, it has also been proposed that the relevant information must be disclosed to users and their identities must be verified. As a consequence, Indian users can now distinguish between legitimate and fraudulent real money games. This is a significant step in the direction of legitimising online games and has the potential to considerably increase the user base of such games and investor interest in the Indian online gaming sector.

Industry Outlook

2023 would be a year of optimism as many eagerly awaited titles will be released for new consoles, and the mobile gaming market will undergo significant shifts in the post-ATT (App Tracking Transparency) era. In the realms of cloud gaming and virtual reality, intriguing developments have also been developed. The global gaming market is expected to increase at a 3.4% CAGR from US$179.1 billion in 2020 to US$211.2 billion in 2025.

The next two years will offer a wealth of new content for the rapidly expanding user base of PS5 and Xbox Series consoles. Going forward, the companies will increasingly choose to extend the life of established franchises rather than rely on a few huge releases. As semiconductors become more abundant, there will be a greater availability of consoles. With the recovery in supply chain, console manufacturers will be in a position to produce more consoles, with new gaming content sustaining ongoing demand. As in-game advertising for AAA games become a more viable revenue generator, the market will embrace hybrid monetisation strategies. As a result, console gaming will grow swiftly in the coming years. The year 2022 demonstrated that price-sensitive participants spend less money during difficult times, while segment engagement remained high. The number of worldwide gamers is constantly increasing. Free-to-play monetisation and subscription services have made playing games simpler than ever before. Historically, gaming has demonstrated its resilience during tumultuous economic times. The online gaming segment is further expected to reach Rs.167 billion by 2023 and Rs.231 billion by 2025, growing at a CAGR of 20%. By 2025, online gaming is projected to reach 500 million users and become the third-largest segment of the Indian M&E industry, fuelled by 5G adoption and the transition from feature phones to smartphones. With the division of sports media rights among the four main broadcasters, the likelihood of play-along games will increase substantially. In 2025, more than 50 major online gaming tournaments are anticipated to take place. Web3.0 gaming based on blockchain technology would enable businesses to target and communicate with their audience and reward users for their contributions.

Web3.0 is anticipated to reach US$ 81.5 billion by 2030, expanding at a CAGR of 43.7%, while the Play-to-Earn NFT games market is anticipated to reach US$ 2.85 billion by 2028, expanding at a CAGR of 20.4% between 2022 and 2028.

Gaming has now become an integral part of consumers existence, and this is expected to stay unchanged in future. The global gaming industry is vast and innovative, and it will continue to grow and change. In the market, there are still numerous opportunities, such as the mobile and cloud gaming markets for cloud gaming service providers, the future investment in data centres for telcos and data centre providers, and the vast array of opportunities for smart TV manufacturers, streaming platforms, and event organisers.


The hospitality industry saw a strong rebound in FY 2022-23, and it appears that demand will continue to be healthy in FY 2023-24. The hospitality industry has experienced a robust recovery in occupancy and average rates, which has cushioned RevPAR (Revenue per Available Room), which is estimated to reach Rs.4,0004,100 by the end of FY 2022-23. Occupancy has increased due to a tighter supply-demand gap generated by fewer supplies in the preceding two years. Increased occupancy would provide market participants with more pricing power and progressively enhance their profitability. However, rising costs of labour, and borrowing due to rising interest rates may have an adverse effect on operating profitability.

Despite these obstacles, industry participants have been able to increase ARR because of robust demand trends. CareEdge estimates a 3-5% increase in RevPAR in FY 2023-24 for industry participants, over FY 2022-23 levels.

The Indian hospitality industry has demonstrated resilience, rebounding back from the rapid decline during the COVID-affected years and subsequently exhibiting even steeper increases. The sector experienced a survival year in FY 2020-21, a revival year in FY 2021-22, and a growth year in FY 2022-23. Strong leisure travel demand provided much- needed relief to the sector. Weddings made a reappearance as well, with numerous hotels totally booked over the season.

The outlook for demand in the Indian hospitality industry in FY 2023-24 is optimistic. Domestic leisure travel may not be as robust as it was in 2023, but it will continue to be substantial and significant. Despite growing concerns about recession and global geopolitical issues, FTAs for leisure and medical purposes are gaining momentum. Corporate travel is anticipated to increase year-overyear in FY 2023-24, but it may still be impacted by ongoing global economic uncertainty, as companies continue to reduce travel costs and use more technology solutions in lieu of inperson meetings. With the continued rebound in occupancies and the sustainability of higher ARRs, the sectors revenue profile is projected to increase, driving profitability through FY 2023-24. In India, the average hotel occupancy rate is anticipated to be between 67-69% in FY 202324, with ARR between Rs.6,200 and Rs.6,400 per night. The meetings of the G20 Summit, the ICC One-Day International Cricket World Cup, and the restarting of international inbound travel, along with domestic leisure and MICE travel, are projected to keep occupancy rates at high levels. The Union Budget for FY 2023-24 focusses on infrastructure development, digital upgrades, sustainability, agriculture, and domestic tourism. The Governments plan to continue focussing on domestic tourism, railways, new airports, heliports, and water aerodromes will enhance regional connectivity and serve as the primary drivers of the domestic tourism industry.


Company Background

Delta Corp Limited (hereafter referred to as "the Company" / "Delta Corp") is engaged in casino gaming and holds a dominant position in the gaming industry in India. The Company, incorporated in 1990, is also one of the industrys largest organised players, having a presence in all gaming formats, including live, electronic, and online. The Company has established a presence in both Goa and Sikkim, the two casino destinations in India. It possesses and operates under both land-based and offshore licences, adding hospitality assets to the casinos. In order to extend its presence in the global market, the Company established a casino at the Hotel Marriott in Kathmandu, Nepal, in February 2020.

The Company has, over the course of its existence, established an indepth grasp of the behaviour and journey of important demographics and users across sectors. This has enabled the company to best attract and retain customers. In addition to entering skill-based online gaming in India, the Company has established a significant presence in the real-money gaming sector. It entered the online gaming market in 2017 and bolstered its position in Indias gaming industry by acquiring Adda52.com, one of the largest online gaming sites in the country. Online skill-based games like poker, rummy, and fantasy sports that can be played for real money in the majority of Indian states have been a significant revenue source for the Company. Currently, it owns and administers the poker and rummy websites Rs.Adda52. com and Rs.Adda52rummy.com along with Multigaming platform (MGP) Rs.adda.games.

Business Segments

Casino Gaming, Online Skill Gaming, and Hospitality are the Companys three primary business segments.


Particulars Description Key Features
950 gaming positions,
120+ live gaming tables,
Deltin Royale, Goa Asias largest offshore gaming vessel with five operational decks. 2 VVIP gaming rooms,
25+ slot machines, spread over 65,000 sq. ft.
430 gaming positions,
Deltin JAQK, Goa Comprehensive entertainment destination with four operational decks. 50+ live gaming tables, 1 VIP gaming area,
8+ slot machines, spread over 40,000 sq. ft.
206+ gaming positions,
Kings Casino (Deltin Caravela) Goa Indias first offshore gaming casino, re-launched in 2016, is a boutique luxury floatel. 30+ live gaming tables, 10+ games,
spread over 25,000 sq. ft.
Deltin Suites Casino, Land-based casino in an All-suite hotel in North Goa. 1,180 sq. ft. casino,
Goa 62+ gaming positions
Deltin Zuri, Land-based casino in a luxury five-star hotel in 1,180 sq. ft. casino,
Goa South Goa. 59+ gaming positions
Deltin Denzong, Sikkim Land-based casino in partnership with Hotel Welcome Heritage. Operations have started in FY 2018-19. 200+ gaming positions, A separate VIP gaming area, spread over 15,000 sq. ft.
220+ gaming positions,
Deltin Casino, Kathmandu-Nepal Company operates a casino at the 5-star property owned by Marriott Hotels in Kathmandu. A separate VIP gaming area, spread over 15,000 sq. ft.


Particulars Description Key Features
Adda52.com Offering online poker games Poker Variants includes "TEXAS HOLDEM, POT-LIMIT OMAHA, CRAZY PINEAPPLE and 5 Card PLO" etc.
Adda52Rummy.com Offering online rummy game Rummy Variants includes "R13 CARDS RUMMY, POINTS RUMMY, POOL RUMMY, DEALS RUMMY" etc.
Adda.games Offering online multi-games Games offered includes Fantasy Sports, Callbreak, Rummy Card Game, Poker, Multiplayer Ludo etc.


Particulars Description Key Features
176 rooms,
The Deltin, Daman First and only 5-star hotel in Daman with around 52,000 sq. ft. state-of-the-art banqueting, conferencing and open lawn area. 03 gourmet restaurants and 02 Bars,
27,000 sq. ft. Indoor event space,
8,000 sq. ft. Retail space
Three swimming pools, with a special kids pool and indoor & outdoor games
Deltin Suites, Goa All-suite hotel in North Goa with integrated large casino. 106 rooms
24X7 Vegas Restaurant, Whiskey Lounge Bar, Gym & Spa


Leading organised Gaming Company in India

Having the first-mover advantage in the under-penetrated industry Wide Client Base and offering robust and diversified gaming platforms portfolio Well-experienced team having exceptional skills centering gaming Having presence in all gaming formats


Skill-based games are rapidly expanding as the preferred pastime of millennials

Strengthening societal acceptance of gaming in India

New licences / geographies - Indian market remains untapped


Business concentration by geography Managing non-core hospitality business

Licence restrictions and limitations as gaming licences are not provided by the regulatory authorities in too many locations


o Unfavourable regulatory changes o Strong rivalry in the gaming industry As a discretionary spending industry, economic downturn may reduce demand

The casino licence for Daman could be further delayed due to regulatory obstacles

Financial Overview

Consolidated Financial Snapshot

(Rs. in Crores)
Year 2022-23 2021-22 YoY change
Casino Gaming 1,010.65 541.79 86.54%
Online Skill Gaming 191.39 161.97 18.16%
Hospitality Division 56.06 44.82 25.08%
Gross Revenue 1,258.10 748.58 68.06%
Less: GST included above 222.08 130.74 69.86%
Less: Inter Segment Revenue 15.25 1.71 791.81%
Net Revenue 1,020.77 616.13 65.67%
EBIDTA 396.73 167.73 136.53%
Profit before Exceptional items and Tax 328.47 105.76 210.58%
Exceptional Item - (7.78) -
Tax Expenses 66.98 29.76 125.07%
Profit after Tax and Minority Interest 261.37 66.99 290.16%

Revenues in the Casino Gaming segment increased by 86.54% to Rs.1,010.65 Crores in FY 2022-23 as compared to Rs.541.79 Crores in FY 2021-22. The Companys gaming business stood resilient and withstood the post-pandemic pressures, exhibiting consistent performance. The Company has surpassed the historical numbers and has registered strong growth thereby reaching an all-time high and crossing Rs.1,000 Crores mark. Gradually, restrictions imposed during the lockdown were lifted, and progressive reopening of the economy contributed to an increase in the number of guests visiting casinos, resulting in the increase in revenue. The Group had record revenue in spite of Deltin Royale being non-operational for nearly one month on account of mandatory dry docking during FY 2022-23.

During FY 2022-23, the Company started operation of "Deltin Zuri", the only luxurious land-based casino in July 2022 which added to casino revenue for the year. The Group operated Casinos in Goa and Sikkim for the entire twelve months, compared to seven months in FY 2021-22. Moreover, the casino in Nepal operated for a full twelve months, compared to eight months of operation in FY 2021-22.

Revenues in the Online Skill Gaming category increased by 18.16% during the year, registering sales of Rs.191.39 Crores in FY 202223 as compared to Rs.161.97 Crores in FY 2021-22 as the segment saw steady growth. There were a few initiatives like an updated Poker App, Poker night with Stars and The Khel Jao campaign that led to an increase in quality user acquisition, retention and helped stabilise new user game play and revenue.

Revenues in the hospitality segment increased by 25.08% to Rs.56.06 Crores in FY 2022-23 as opposed to Rs.44.82 Crores in FY 2021-22. The rebound was due to the gradual opening up of the economy and people wanting to spend more time outside their homes.

The EBIDTA margin has increased to 37.18% in FY 2022-23 from 25.64% in FY 2021-22 primarily due to an increase in revenues.

Consequently, higher revenues and optimised costs led to an increase in Net profits of FY 2022-23. The Company reported net profit of Rs.261.37 Crores in FY 2022-23 as compared to Net Profit of Rs.66.99 Crores in FY 2021-22.

The Group remained debt-free as on 31st March, 2023. The cash and cash equivalents stood at Rs.124.55 Crores as on 31st March, 2023.

RoNW stood at 13.25% as on 31st March, 2023 as against 6.67% on 31st March, 2022.

Key Financial Ratios

Ratios FY 2022-23 FY 2021-22 YoY change
Debtors Turnover 255.19 182.29 39.99%
Inventory Turnover 0.38 0.28 35.71%
Current Ratio 4.71 4.33 8.78%
Operating Profit Margin (%) 28.58% 11.94% 139.36%
Net Profit Margin (%) 25.61% 10.87% 135.60%
Return on Networth - RoNW 13.25% 6.67% 98.65%

During FY 2022-23, the Group operated for the entire twelve months, unlike FY 2021-22 where operations were shut for more than four months. Hence, there are significant changes in the majority of ratios.

Debtors as well as Inventory turnover ratios improved significantly in FY 2022-23 due to a gradual increase in net revenue by 65.67%.

The operating profit margin, net profit margin, and return on net worth increased as the increase in revenue exceeded the increase in operating expenses, which resulted in better margin and return in FY 2022-23.

Interest coverage ratio improved as the Group reported profits at EBIT level increased by 210.58% amounting to Rs. 328.47 Crores in FY 2022-23.


Debtors Turnover

The above ratio is used to quantify a Companys effectiveness in collecting its receivables or money owed by customers. The ratio shows how well a Company uses and manages the credit it extends to customers. It is calculated by dividing turnover by average trade receivables.

Inventory Turnover

Inventory Turnover is the number of times a Company uses and replaces its inventory during a period. It is calculated by dividing the cost of goods sold by average inventory.

Current Ratio

The Current Ratio is a liquidity ratio that measures a Companys ability to pay short-term obligations or those due within one year. It is calculated by dividing the current assets by current liabilities.

Operating Profit Margin (%)

Operating Profit Margin is a profitability or performance ratio used to calculate the percentage of profit a Company produces from its operations. It is calculated by dividing the EBIT by turnover.

Net Profit Margin (%)

The net profit margin is equal to how much net income or profit is generated as a percentage of revenue. It is calculated by dividing the profit for the year by turnover.

Return on Net Worth (RoNW)

Return on Net Worth (RoNW) is a measure of profitability of a Company expressed in percentage. It is calculated by dividing total comprehensive income for the year by average capital employed during the year.

Debt Equity Ratio and Interest Coverage Ratio:

As Group does not have any debt during the year and hence Debt

Equity Ratio and Interest Coverage Ratio is not applicable.


Delta Corp is a pioneer in Indias real-money gaming industry. The Company develops a digitally native, technology-driven gaming platform that provides a gamer-centric gaming experience for all of its products. The Company has recently launched the multi-gaming platform vertical, which will serve as the growth channel for the foreseeable future. The Company believes that its historical traction and gamer-first philosophy positions it well to capitalise on the real-money gaming opportunity. With the Companys presence in tourist destinations, land-based casinos are anticipated to generate the most revenue. Additionally, many vacationers want to experience the entertainment that these establishments provide.

Delta Corp intends to be the platform of choice for real-money game participants across the country. The Company believes that investment in its gaming platform is essential for the growth of the Company, the acquisition of new players, and the retention of its existing players through game variations, promotions, etc. Engineers created multi-gaming platforms based on a distributed and scalable architecture that provides game participants with a flexible, secure, and uninterrupted gaming experience. The agility required for innovation is enhanced by the rapid development approach undertaken by the Company. The Companys gamer data pools and knowledge of gamer tendencies have enabled it to nurture innovation and thereby increase player engagement. Adda52 is the first online poker platform in India to provide multiple poker variants.

The online gaming segment has been reinvesting all of its profits from the poker business into rummy, fantasy, and a multi-gaming platform that is in the construction phase. The recent ban on online gaming in Tamil Nadu in March 2023, is expected to have no effect on the Company because, unlike rummy, which is highly concentrated in the southern states, poker is a pan-India game with a more scattered presence. The Deltatech Gaming IPO will be launched soon by the Company, with a combination of fresh issuance of shares and an offer for sale. In preparation for its IPO, the Company is currently concluding all regulatory filings and documents. The Company anticipates that this newly listed Company will soon achieve new growth heights.


Regulatory Risk:

The Company is subject to several laws and regulations. Enhanced supervision by regulators and unfavourable regulatory developments in key areas could negatively affect the Companys business operations. In addition, any standard violation or non-compliance may result in licence revocation or suspension, fines, and criminal penalties.


In recent decades, the Company has established a long-lasting partnership with local governments and authorities to ensure that all new laws and updates to existing laws are appropriately addressed. The Company always ensures compliance with regulatory obligations and statutory compliance management system is administered with utmost care.

Peer Risk:

The Company confronted competition from both new and established players, posing a competition risk. New market entrants with superior technology or a shift in marketing strategy by the Companys competitors could pose a formidable risk to the business.


Over time, the Company has established a strong brand identity and a dominant position in the gaming industry. Delta Corp is the most favoured trading partner due to its high-quality content, development personnel, technology infrastructure, data analytic skills, scope and quality of product and service offerings, user experience, and brand recognition.

The Company endeavours to maintain its competitive edge by enhancing user engagement and experiences through the inclusion of new content and services, as well as by increasing social media interactions.

Acquisition-related Risk:

An acquisition, which can be a huge task for the merger and integration of two businesses, entails uncertainties and dangers. Failure to resolve these risks could have a materially detrimental effect on the financial position, operating performance, and cash flow of the Company.


In the past, the Company has accurately identified strategic acquisition and investment targets. The Company has implemented a stringent evaluation standard to make the acquisition process more objective.

The Board makes its decisions based on clearly articulated principles that significantly reduces the likelihood of a mismatch.

Geographic Concentration


Profit risk increases when an organisation is excessively dependent on a single industry or nation.

Geographic concentration risk is a threat to the organisation because of its excessive reliance on a specific region or clientele for business purposes.


Gaming forms the Companys primary line of business. Additionally, hospitality related to gaming has been added to its portfolio. Delta Corp has expanded its operations into the online gaming industry in order to attract a large clientele of enthusiasts. By expanding its operations to Sikkim, Nepal, and Daman in addition to Goa, the Company has reduced its dependence on a single state.

Inflation Risk:

Human capital is one of the Companys main costs, which could experience unprecedented growth in the event of unanticipated wage inflation. Additionally, higher inflation may impact the purchasing power of the Companys customers.


The Company enters into long-term labour contracts/ agreements with employees in order to guarantee payment along with cost visibility. The role and contributions of the employees have been crucial to the Companys ability to maintain and strengthen its dominant position.

Delta Corp has demonstrated the ability to recruit, cultivate, and retain a diverse group of qualified individuals. It ensures that employees personal objectives are closely aligned with those of the organisation.

The Company strives to have a high employee retention rate by implementing best practices, offering competitive remuneration, and providing rigorous training at all organisational levels. In addition, the casino and gaming industry has been one of the best-performing industries this year, as favourable tailwinds from the recovery in leisure demand have outweighed inflation headwinds and economic growth concerns.

Unanticipated Event Impact Risk:

Any unanticipated risk, such as geopolitical, novel pandemic variants, or Black swan events, may have an effect on the Company. Such events may have an effect on the Companys hospitality industry as the travel sentiment of people around the world is negatively affected.


The Company has been a well-integrated gaming and hospitality brand in the nation. The Companys revenue from operations and other income increased primarily due to an increase in the number of gamers, as well as an increase in the number of games played by existing and first-time gamers.

During the year under review, the Company witnessed an increase in the registration of first-time gamers as a result of campaigns on television and OTT platforms during COVID-19- induced lockdowns and restrictions. In addition, the Company is well- prepared to withstand any such unanticipated risk. Future economic conditions and future uncertainty, if any, will continue to be closely monitored by management.


The Company is held accountable for implementing and maintaining internal control measures that are commensurate with the size and complexity of its operations. The rules and procedures aim to ensure efficient administration of operations, safeguarding of assets, optimal resource utilisation, accuracy of financial data, and compliance. The internal control system is examined and evaluated routinely across all business operations and areas.

Management and Internal Auditors conduct recurring evaluations of internal control systems. The Audit Committee evaluates the reports of internal auditors, and corrective measures are taken to ensure adequate internal controls. The Board recognises the auditors reports as an independent validation of the operations and business performance.


This report contains statements that may be Rs.forward-looking including, but without limitation, statements relating to the implementation of strategic initiatives and other statements relating to Companys future business developments and economic performance. While these forwardlooking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomics, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/likely events or circumstances.

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