Rakesh Jhunjhunwala-owned Delta Corp stock falls 4% in early trade, here's why

Delta Corp share fell in early trade today after the firm reported over 16% fall in net profit for the quarter ended March 2022. The casino chain player reported a profit of Rs 48.11 crore in the last quarter compared to the profit of Rs 57.77 crore in the year-ago period.

Ace investor Rakesh Jhunjhunwala and wife Rekha Jhunjhunwala held 1.15 crore shares or 4.31% stake in the company, according to the shareholding pattern in the December quarter last year. Meanwhile, Rekha Jhunjhunwala separately held 3.18% stake in the company.

The share of the casino chain player hit an intraday low of Rs 309.2, down 4.08% against the previous close of Rs 322.35 on BSE.

The midcap stock opened with a loss of 2.54% at Rs 314.15 today.

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The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

The stock has gained 105.01% in one year and gained 20.18% since the beginning of this year. Market cap of the gaming and entertainment firm fell to Rs 8,311.71 crore on BSE.

Total 1.30 lakh shares of the firm changed hands amounting to a turnover of Rs 4.07 crore.

Revenue rose 3.30% to Rs 218.32 crore in Q4 against Rs 211.34 crore in the corresponding quarter of the previous fiscal.

The board of the company recommended a final dividend of Rs. 1.25 per equity share which would be paid within 30 days from date of approval of the same by the shareholders. The company said it has posted robust numbers for the full financial year despite closure of operations over various periods on account of ongoing Covid crisis.

However, net profit zoomed 378% to Rs 66.99 crore for the fiscal ended March 2022 against Rs 24.10 crore loss for the fiscal ended March 2021.

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Sales rose 47% to Rs 616.13 crore in the last fiscal against Rs 418.87 crore in the March 2021 fiscal.

"Further between January to February due to the Omicron wave, there was a substantial decrease in visitation. In addition, Goa had the election code of conduct in place till 14 February, 2022 which further restricted activity," it said.

Meanwhile, the benchmark indices opened lower today amid weak global cues. Sensex fell over 350 points to 58,594.77 and Nifty slipped 90 points to 17,584.85.

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