Delta Corp’s share price was taking a beating on Wednesday after the online gaming and casino firm posted weak results for the first quarter amid a stricter tax regime.

What Happened: Delta Corp Ltd reported a sharp 67.6% drop in consolidated net profit to ₹21.68 crore for Q1, down from ₹68 crore in the same period last year. Revenue from operations also fell 30% to ₹181 crore from ₹259 crore in the previous fiscal’s June quarter.

Sequentially, net profit declined 69% from ₹72 crore in Q4. EBITDA plummeted 68.2% to ₹30.5 crore from ₹95.8 crore a year ago, with the margin dropping to 16.9% from 36.9% year on year.

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The board recommended a final dividend of ₹1.25 per share, pending shareholder approval.

Price Action: Delta Corp’s share price was down nearly 4% at ₹137.22 in morning trade on Wednesday. The stock had gained up to 9% in the run-up to the results.

Recent gains were driven by speculation of potential relief from the GST Council, which the gaming industry hoped would amend the CGST Act, 2017, to eliminate retrospective tax demands and review the 28% tax rate on online gaming and casinos. However, the Council meeting concluded without providing the expected relief.

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