Chairman's Communication

Dear Stakeholders,
The joy of life comes from our encounters with new experiences, and hence there is no greater joy than to have an endlessly changing horizon, for each day to have a new and different sun. Henceforth, Delta has been ever broadening its horizons.

The past year has been amongst the most significant one for Delta Corp, as the Company reached an inflection point in terms of both, financial performance and growth. The Company now stands at the cusp of a New Horizon and we expect to propel to never been seen heights.

An array of key developments occurred recently for the Company.

  • Deltin Caravela, India's first offshore gaming casino, was relaunched as a boutique, luxury flotel, aimed to attract the discerning elite.
  • We acquired Gauss Network, which owns India's leading online poker website, With this acquisition, Delta Corp has made its way into online gaming - an area of great potential - opening us up to several cross-selling opportunities with our casinos.
  • We expanded our onshore gaming foothold with the addition of a casino in Sikkim, at Hotel Welcome Heritage Denzong Regency.
  • Our successful QIP of Rs. 5,500 million has afforded us the opportunity to grow exponentially and explore exciting, groundbreaking business opportunities, while also making us debt free.

With the occurrence of demonetization, there was surely some uncertainty surrounding all businesses, but we at Delta Corp have found that all fears were misplaced. While stock prices reacted to the initiative in its early stages, investors soon came to see that the Company's business was not lead or dependent on cash.

During last financial year 2016-17, Delta Corp delivered a remarkable financial performance for the year, with the income from total operations at 460 crores and Profit Before Tax (PBT) for the year increased to 98 crores. Earning Per Share (EPS) was 3.19, as compared to 1.66 in the year before. Furthermore, the Company paid a dividend of 0.35 per equity share.

It is significant to note that Delta Corp has been consistently cash flow positive since FY2013. Now that the investment phase has passed, the Company is in a position to add to its top-line, while our fixed costs remain largely constant. As a direct result of our strong operating leverage, which will continue to hold us in good stead and boost margins, we estimate an additional revenue of 100 over the breakeven point, adding 65 to the PBT level. In addition, the expected launch of the casino at Deltin Daman will further enhance the Company's gaming capacity, bringing 1,200 additional gaming positions into its fold.

Delta Corp is in a leading position in the market, operating five of the fifteen operational casinos in India. We dominate Goa, the gaming capital of India, holding three of the six offshore gaming licenses issued by the government. Currently, approximately 87% of the Company's revenue comes from gaming operations, while 12% is garnered from hospitality operations.

I strongly believe that results this year demonstrate that our business has been propelled to the next level and new horizons beacon.

We are also excited about our entry into the online gaming sphere, which has outstanding potential in India and the Company's foray into this sector will open doors to a diverse clientele across a new demographic. With this move, marking our presence across multiple platforms, we believe that the Company will secure its position as a leading player in the gaming and hospitality industry.

The new Gaming Policy proposed by the state of Goa is also expected to bring several positive changes, a key one being the proposed move of offshore casinos to land. Onshore casinos are far easier to scale up, as well as more stable from a business perspective. These developments will further accelerate the Company's momentum.

Delta Corp's journey continues, into A New Horizon and is filled with exciting new prospects. As we march forward along this path together, I thank you for your continued trust and faith in the Company and assure you that the best is yet to come.

Yours sincerely,

Jaydev Mody