Rakesh Jhunjhunwala owned gaming company rose 6% on strong earnings growth

Delta corp Q3 revenue grew 100% and PAT up by 6750% on a YoY basis and they are also exploring options of an IPO for its wholly-owned gaming unit GNPL.

The largest gaming company in India has announced their Q3 results yesterday in the post-market hours. Delta corp is 12% up in a week and almost 6% up for the day. This is due to the high anticipation of Q3 results. It has rallied from Rs 260 to Rs 299 in the last five trading sessions.

Delta corp Q3 revenue synopsis:

Revenue grew more than 100% on a YoY basis to Rs 247.22 crore in the December 2021 quarter from Rs 120.82 crore in the same quarter last year. It has jumped more than three-fold compared to Rs 74.72 crore in the September 2021 quarter.

Revenue from Gaming operations which contributes 80% of the total revenue has grown more than 150% in the current quarter compared to last year same quarter.

Operating profit grew multi-fold times around 460% on a YoY basis to Rs 112 crore in the December 2021 quarter from Rs 20 crore in the same quarter last year. They have posted an operating loss of Rs 10 crore in the September 2021 quarter. Operating profit margin stood at 45.13% which got expanded around 3000 bps YoY basis.

The company posted such huge margins due to less employee benefit expenses and other expenses in the current quarter compared to last year same quarter.

Net Profit grew multi-fold times around 6750% on a YoY basis to Rs 70.38 crore in the December 2021 quarter from Rs 1.28 crore in the same quarter last year. They have posted a net loss of Rs 22.28 crore in the September 2021 quarter. Net profit margin stood at 28.84%, which got expanded around 2700 bps YoY basis.

The company is looking to explore a potential public issue and listing of equity shares of GNPL(a wholly-owned subsidiary of the company engaged in the online gaming business) to enable it to raise resources for expansion of its business and unlock value for the shareholders of the company. 

At 2 PM, shares of Delta corp was trading at Rs 289, up by 2.2% for the day.