An offshore casino in Goa (Image: Delta Corp)
For gaming and leisure company Delta Corp, the Q2FY23 numbers were a harbinger of hope with the figures comfortably surpassing pre-COVID levels. The company had stated in a stock exchange filing that it has registered the highest revenue and profit for the half year ended September 2022, and Jaydev Mody — the Chairman of the company, who is a first-generation entrepreneur – believes that the second half of this year is also “on track to be the best ever”.
In an interview with CNBC-TV18, Mody said “we are on track to see a robust performance in H2FY23; expect to do better in the third and fourth quarter.”
Delta Corp — the only listed gaming and hospitality company in India — is currently looking to raise Rs 550 crore via the Deltatech gaming IPO, he added. After the IPO, Mody will hold 70 to 75 percent of Deltatech Gaming while the balance will be public.
Also read: D-Street unimpressed by Delta Corp’s Q2FY23 numbers surpassing pre-COVID levels
Speaking about the company’s prospects, the Delta Corp chairman said he sees positive EBIT coming from the online skill gaming and hospitality sector. He added: “The online business in the hospitality sector generated negative EBIT in the first half, but is likely to look up in the second half, as we are looking at exponential growth.
Delta Corp currently has a total gross block of Rs 1,170 crore, out of which Rs 450 crore is with the Daman property – Deltin Daman, which is currently under litigation. Although Mody is expecting a favourable judgement in the Daman case, there is no saying when the verdict will be out on the litigation.
He told CNBC-TV18: “Our gross block is around Rs 1150-1170 crores, out of which Daman is around Rs 450 crores; so, the balance rupees seven to eight hundred crores is the asset we are really sweating… The day the Daman project starts materialising, the entire gross block will do much better.”
He added: “The judgement can come out any day the court has time to hear our case. Hoping to get a judgement in our favour; hopefully, this will correct itself.”
Speaking about the initial trends for Delta Corp’s Goa projects, Mody said: “In the last ten days of December and first few days of January, you’ll be lucky to get a booking at our hotels or a spot at our casino. We are sold out.”
When asked about the company’s cash on books currently, Mody informed that it stands at Rs 550 crores and added that he expects another Rs 250 crore realisation on the flats in Goa. Elaborating on this further, the Delta Corp chairman said: “We were forced to invest on a Rs 120 crore project in Goa, because we wanted to cash out. We are building 250 apartments there, which we plan to start selling by mid-2023 and expect to complete sales within a year of opening.”
As for the stake it owns in Advani hotels, Jaydev Mody clarified that he is keen to monetise on the holdings, but there has been no visibility or opportunity on monetising the stake yet. “We would like to sell our holding in Advani hotels; we want to monetise that; we are sellers,” he said.
