Delta Corp Limited

Hardik Dhebar

CHIEF FINANCIAL OFFICER, DELTA CORP LIMITED

INR42 crore

of online gaming itself, if you compare year-on-year, we've done about INR42 crore, INR43 crore of revenue last year similar quarter, which is currently at INR50 crore number. That

INR43 crore

ming itself, if you compare year-on-year, we've done about INR42 crore, INR43 crore of revenue last year similar quarter, which is currently at INR50 crore number. That is basically

INR50 crore

ve done about INR42 crore, INR43 crore of revenue last year similar quarter, which is currently at INR50 crore number. That is basically the initial effects of the effort that is being put in by the operating

INR550 crore

then decide on the launch of the issue. The issue, obviously, as everyone knows, is roughly about INR550 crore divided into an offer for sale of INR250 crore and INR300 crore of primary issuance, which obviou

INR250 crore

sue, obviously, as everyone knows, is roughly about INR550 crore divided into an offer for sale of INR250 crore and INR300 crore of primary issuance, which obviously will act as the war chest in the armory for

INR300 crore

s everyone knows, is roughly about INR550 crore divided into an offer for sale of INR250 crore and INR300 crore of primary issuance, which obviously will act as the war chest in the armory for the online busine

rs,

other item that needs to be highlighted in specific. I'm happy to open the floor for question answers, and I'll try to answer them to the best of my ability. The first question is from the line of Vir

28%

question is about the present GST and like impact, what could be the worst-case scenario if it is 28%? With regards to the IPO, I just gave an update in the opening remarks itself that we received a

INR2 crore

quarter? On a monthly run rate in as far as Sikkim is concerned, we are doing anywhere between INR2 crore to INR2.5 crore a month, whereas Nepal, we are doing anywhere between INR3.5 crore to INR 4crore a

INR2.5 crore

n a monthly run rate in as far as Sikkim is concerned, we are doing anywhere between INR2 crore to INR2.5 crore a month, whereas Nepal, we are doing anywhere between INR3.5 crore to INR 4crore a month.

INR3.5 crore

anywhere between INR2 crore to INR2.5 crore a month, whereas Nepal, we are doing anywhere between INR3.5 crore to INR 4crore a month. Moderator: Digant Haria: Hardik

INR 4crore

n INR2 crore to INR2.5 crore a month, whereas Nepal, we are doing anywhere between INR3.5 crore to INR 4crore a month. Moderator: Digant Haria: Hardik Dhebar: Diga

“And we believe that this is only going to get more and more stronger as we move further given the fact that we would have India as one of the rare economies that will be growing in the higher single digits or double digits going forward.”

“So should I expect that the run rate for other expenses have been at this level only?”

“So the first question is, if you can give an update on the greenfield project and any change in timeline for that?”

“So the greenfield project is, is the one that you're referring to the Mopa Airport integrated resort, right?”

“So there we received the final does it notification approving the project and approving the area as an investment promotion area about a month ago.”

“So it's only by December end or January is when we will start breaking ground and actively working on the project.”

“But I think the way it is worth it given the fact that now it's a single-window clearance project, I don't have to run from pillar to post going from department to department seeking approvals and permissions.”

“It's only one authority, which is the GIPV, which will approve and everything will be done through that.”

“It is a 4-year sort of a project that we are looking at.”

“So by 27 or so, we should be completing the entire project, if all goes well and there are no surprises during the course.”

Hardik Dhebar

24

Navin Goel

5

Pratik Shetty

4

Dhwanil Desai

3

Mayur Gathani

3

Chintan Mehta

2

Dixit Doshi

2

Abhinav Nigam

2

Moderator

2

Viraj Mehta

1

Hardik Dhebar

Ladies and gentlemen, good day, and welcome to the Delta Corp Limited Q2 FY'23 Earnings Conference Call hosted by Antique Stock Broking Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alpesh Thacker from Antique Stock Broking Ltd. Thank you, and over to you, sir. Thank you, Faizan. Hello, everyone, and welcome to second quarter FY'23 Investor Conference Call of Delta Corp Limited. Today, we have with us the management of Delta Corp, represented by Mr. Hardik Dhebar, Chief Financial Officer of the company. The format of the discussion would be brief opening remarks by the management, followed by Q&A session. Without much delay, let me hand over the call

Hardik Dhebar

similar, and you had also mentioned that we are not likely to increase our end team prices. So then how does the growth come in, build a new vessel? I think we have answered this multiple times earlier that it is the quality of crowd that one needs to monitor. I would be more happier to filter the crowd in a way where I get more focused than serious people who want to sit on the table and game rather than people who come for food drinks and entertainment. And therefore, we have a built-in mechanism like which we bring it into use, especially on busy weekends, where we don't sell the entry-level packages at all and it's only the high- end packages because for a gamer, it really doesn't matter because he is anyway going to spend. And most of my regulars or most of my club-Deltin members, their entries are anyways taken care of. So the moment I'm able to filter the crowd and in normal terms better the product mix, as we call it, that will obviously yield better results in terms of revenue

Hardik Dhebar

The next question is from the line of Arun Kumar from BMO Capital. Please go ahead. Congratulations on a very good set of numbers. I just wanted to know about the status of the IPO like where is it likely to launch? And the second question is about the present GST and like impact, what could be the worst-case scenario if it is 28%? With regards to the IPO, I just gave an update in the opening remarks itself that we received approvals. We are commencing the process of road shows, et cetera, we'll make the assessment of the market and then decide on the right time to launch. And as far as we are concerned, there is no delay or no holding back from us as the company or the issuer per se. With regards to GST also, I think I gave a very detailed scenario of what the situation is presently. As regards the rate of GST is concerned, casinos have historically right from the day that GST was introduced, have been paying 28%. So for Delta, it really doesn't make a difference. Next question is fro

Dhwanil Desai

The next question is from the line of Digant Haria from GreenEdge Wealth. Please go ahead. I think you alluded to a few things regarding this question, but I still asked is that before COVID and after COVID, have you seen a change in mix of the customers which come to your casino especially between the casual customers and the serious gamers or is that more or less the same? So that is entirely something that we can control. On days when we have enough capacity available and it's not a busy day like a Monday or a Tuesday or a Wednesday type. So the crowd is what we allow freely to walk in the way we want. And on busy weekends, long weekends and on the blackout dates is where we try and control the crowd in a way where we try to filter out the serious gamers from the non-gamers. So I think that mix more or less remains the same. I don't think there is any difference or change in that. Okay. Perfect. And second question is on the online gaming part that we've been stuck in that INR40 cro

Hardik Dhebar

So the greenfield project is, is the one that you're referring to the Mopa Airport integrated resort, right? Yes. Okay. So there we received the final does it notification approving the project and approving the area as an investment promotion area about a month ago. And then obviously, we were in the midst of the monsoon. So it's only by December end or January is when we will start breaking ground and actively working on the project. There have been a little bit of a delay from the original timeline given that the permissions and the approvals given the COVID situation took a little longer than what we anticipated. But I think the way it is worth it given the fact that now it's a single-window clearance project, I don't have to run from pillar to post going from department to department seeking approvals and permissions. It's only one authority, which is the GIPV, which will approve and everything will be done through that. So I think the delay was worth it, the way it was worth it.

Chintan Mehta

That's natural, right? You get a newer asset it's going to depreciate more than an asset which is already depreciated for the last 10 years. Okay. And second question on the Deltatech IPO. Post IPO, what would be the structure of revenue allocation from Deltatech gaming to Delta Corp any royalty or something? There was no royalty ever paid by Deltatech to Delta Corp. Even today, there is no royalty that is being paid or received. Other than the fact that there are certain business arrangements in terms of the live poker room that Deltatech and manages and does a lot of things which Delta Corp or with Deltin Royale. So those kind of revenue share arrangements may continue, but other than that there is no royalty ever contemplated. Okay. I have just one last request. Just can you share any internal metric or something to take the Q-o-Q like gross gambling revenue or average ticket size or something, anything?