Delta Corp hits 10% lower circuit; here is why

Shares of Delta Corp nosedived 10 per cent on the BSE on Monday (October 16) and hit a new 52-week low of Rs 126 apiece. The stock crashed after the casino chain said it had received another notice from the GST authorities to pay up an additional Rs 6,385 crore as the tax shortfall due from its subsidiary company, Deltatech Gaming.

“Deltatech Gaming Limited, a subsidiary of the company, has received an intimation for payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and the West Bengal GST Act, 2017 from the Directorate General of GST Intelligence, Kolkata, on October 13, 2023,” said the company in a regulatory filing.

For the January 2018 period to November 2022, the amount of the alleged tax shortfall is over Rs 6,236 crore, while for the period between July 2017 and October 2022, the shortfall amounts to more than Rs 147 crore.

“The notice advises Deltatech Gaming Limited to pay the alleged tax shortfall along with interest and penalty, failing which a show cause notice will be issued to the company under Section 74(1) of the CGST Act, 2017,” the filing added.

Further, the intimation received also stated that the CEO and Executive Director of Deltatech Gaming Limited, being in charge of its day-to-day affairs, is liable for a penalty under Section 122(3)(a) of the CGST Act, 2017, read with the West Bengal GST Act, 2017.

Delta Corp share price performance

Shares of Delta Corp in the past one year have eroded investors' wealth by more than 41 per cent, while its share price has gone down 30 per cent in the last one month.

Delta Corp financial results

In the September-ended quarter, the company’s total revenue stood at Rs 282.6 crore, a 1 per cent increase from Rs 279.9 crore logged in the same quarter last year. The consolidated net profit at the firm grew a tad from Rs 68.2 crore in Q2 FY23 to Rs 69.4 crore in the September-ended quarter of the ongoing financial year.

About Delta Corp

Delta Corp is a small-cap company with a market capitalisation of Rs 3,379 crore. Delta Corp. is the only listed company engaged in the casino industry in India.