In a recent turn of events, Delta Corp’s subsidiary, Deltatech Gaming Limited, based in Kolkata, has found itself on the receiving end of a substantial tax demand notice from the GST department. This notice amounts to a staggering ₹6383 crore. What’s even more astonishing is that the company has received GST demand notices not just for a single period, but for two distinct timeframes – July 2017 to November 2022 and January 2018 to November 2022. The financial implications of this development are profound.
Unraveling the Numbers: The ₹6383 Crore Tax Demand Notice
Diving into the specifics, Deltatech Gaming Limited has been asked to settle dues of ₹147,51,05,772 for the period spanning July 2017 to November 2022, and a mind-boggling ₹62,36,81,07,830 for the duration of January 2018 to November 2022. These eye-popping figures underscore the enormity of the tax-related challenges faced by the subsidiary.
Stunning Q2 Profits and Ongoing Growth
Notwithstanding the challenging circumstances, Delta Corp recently unveiled its Q2 financial results, and the numbers are nothing short of impressive. The company reported a consolidated profit growth of 1.8%, reaching a substantial ₹69.5 crore in the second quarter. This boost in profits reflects the company’s resilience and ability to navigate adversity effectively.
Sustained Revenue Growth
Beyond the impressive profit margins, Delta Corp’s consolidated revenue for the second quarter exhibited remarkable growth, ascending to ₹270 crore from the previous year’s ₹270 crore, highlighting sustained revenue growth.
Share Price Woes: Investors Disheartened
Despite its financial performance, Delta Corp’s share price has left investors disheartened. Over the past six months, the company has witnessed a 27% decrease in its returns, while the last year has seen a significant 36% drop in share value. The current year has also been unkind to its share price, with a substantial 35% decline. A particularly harsh blow was the recent one-month decline of 23%, culminating in a market close at ₹139.50 on October 13, 2023. The company’s market capitalization currently stands at ₹3,748.80 crore.
This rollercoaster of financial fortunes and market performance underscores the volatile and challenging landscape that Delta Corp faces as it navigates the complex world of gaming and taxation regulations.