Delta Corp Ltd

NSE:DELTACORP

Revenue Impact: Delta Corp’s Q3 performance saw lower revenue, mainly due to the new GST regime and decreased visitation, but management noted that December’s run rate had returned to pre-GST levels.

GST Burden: The new GST methodology increased effective tax costs by about 6% on gross gaming revenue, causing a direct hit to margins.

Visitation Drop: Paid customer visits were down 6% YoY and 4% QoQ, attributed to GST changes, seasonal events, and overall lower tourism in Goa.

EBITDA Margin Guidance: Management expects sustainable EBITDA margins of 35–36%, down from previous 41%, primarily due to GST but expects improvement with revenue growth and capacity expansion.

Capex & Expansion: Major investments are ongoing: a new ship (INR 280–290 crores), continued work on a Miramar hotel (total INR 365 crores), and a phased integrated resort project starting with a theme park.

Cash Position: Delta Corp reported strong liquidity with around INR 500 crores in reserves after recent investments, supporting ongoing projects and expansion.

Real Estate Diversification: The company outlined its strategy for real estate via a JV with Peninsula Land, allocating INR 250 crores initially, targeting quick-turnaround projects in Mumbai and Goa.