Q3-FY24 Result Analysis of Delta Corp. Ltd

Q3-FY24 Result Analysis of Delta Corp. Ltd
Q3-FY24 Result Analysis of Delta Corp. Ltd

by Tanushree Jaiswal Last Updated: Jan 10, 2024 - 11:39 am 289 Views
Listen icon

Delta Corp. Ltd. Q3 of FY24

(Methodology: Red=Decrease, Green=Increase)

Analysis

Revenue from Operation

1. Q3-FY24: ₹231.74 Crores, decreased by 14.4% from Q2-FY24 (₹270.59 Crores).
2. Y-o-Y: Decreased by 15.2% from Q3-FY23 (₹273.37 Crores).
3. 9M-FY24: ₹775.13 Crores, a Y-o-Y decrease of 2.3% from 9M-FY23 (₹793.61 Crores).

There is a significant Q-o-Q & Y-o-Y decrease in revenue, indicating potential challenges in the company's operations.

Operating Profit

1. Q3-FY24: ₹36.8 Crores, decreased by 54.2% from Q2-FY24 (₹80.39 Crores).
2. Y-o-Y: Decreased by 56.4% from Q3-FY23 (₹84.48 Crores).
3. 9M-FY24: ₹194.98 Crores, a Y-o-Y decrease of 18.4% from 9M-FY23 (₹238.94 Crores).

Operating profit has seen a significant decline both Q-o-Q & Y-o-Y, indicating challenges in cost management or a decrease in overall profitability.

Operating Profit Margin

1. Q3-FY24: 15.9%, a decrease of 138 basis points (Bps) from Q2-FY24 (29.7%).
2. Y-o-Y: Decreased by 150 Bps from Q3-FY23 (30.9%).
3. 9M-FY24: 25.2%, a Y-o-Y decrease of 344 Bps from 9M-FY23 (26.5%).

The decline in operating profit margin indicates reduced profitability relative to revenue, possibly due to increased costs or inefficient operations.

Net Profit

1. Q3-FY24: ₹34.48 Crores, decreased by 503 Bps from Q2-FY24 (₹69.44 Crores).
2. Y-o-Y: Decreased by 593 Bps from Q3-FY23 (₹84.82 Crores).
3. 9M-FY24: ₹171.83 Crores, a Y-o-Y decrease of 183 Bps from 9M-FY23 (₹210.2 Crores).
The substantial decrease in net profit indicates challenges in maintaining bottom-line profitability.

Net Profit Margin 

1. Q3-FY24: 14.9%, a decrease of 108 Bps from Q2-FY24 (25.7%).
2. Y-o-Y: Decreased by 161 Bps from Q3-FY23 (31.0%).
3. 9M-FY24: 22.2%, a Y-o-Y decrease of 43 Bps from 9M-FY23 (26.5%).

Similar to the operating profit margin, the decline in net profit margin suggests reduced efficiency in converting revenue to net income.

Earnings Per Share (EPS)

1. Both Basic & Diluted EPS show a significant decrease Q-o-Q & Y-o-Y.
2. The decline in EPS indicates reduced earnings available to each shareholder.

Overall Analysis & Suggestions  

1. Delta Corp Ltd. is facing challenges in both revenue generation & profitability.
2. The decline in operating profit & net profit margins indicates potential operational inefficiencies or increased costs.
3. The reasons behind these declines, such as changes in market conditions, cost structures, or management strategies. Considering the fact that gaming industry in India and the hospitality industry expecting a bit of soreness but still growing persistently.
4. The company should highly consider to include cost-cutting measures, operational improvements, or strategic adjustments to enhance overall performance.

Conclusion

According to Delta Corp, the holding company had goodwill that was recognized in prior years and amounted to ₹355.33 crore upon consolidation in the holding company's consolidated financial statements.
"Considering the fact that the holding and subsidiary companies have a good ground to defend against the said show cause notices, the Group management believes that until the GST matter gets effectively concluded, no provision for impairment is currently required towards goodwill and other assets related to the three subsidiaries, as reflected in the consolidated financial results," it stated.

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Stock in Action - CAMS

CAMS Stock movement of Day

Weekly Market Outlook for 15th April to 19th April

The benchmark indices started on a weak note and continued downward during Friday's session, influenced by weak global cues. Both the Nifty50 and BankNifty experienced a sharp decline of almost 1% each after reaching their all-time highs on Wednesday. 

Why Should You Not Break Your Fixed Deposit?

Fixed deposits are the safest option to save money. The premature withdrawal of a fixed deposit means an early debit of your investment or savings before the maturity period. There are certain reasons why to not break FD before maturity as they lead to calamities like penalties, taxes, and lower rates of interest depending upon the conditions laid by the bank.