Chairman's Communication

Dear Stakeholders,
 
I am delighted to report a strong set of results, which has been an outcome of a steadfast consistency in advancing our strategic initiatives for profitable growth.

While the previous financial year was all about moving onward and upward to reach greater heights of success, this year was marked with surging ahead past challenges to surmount new peaks of growth by surpassing expectations and consolidating the momentum. Having commenced our operations in 2008, we completed a full decade this year. We look ahead with confidence and optimism, grounded in solid strategies, and an intensified focus on agility. We are laying the foundation for healthy growth in 2020 and beyond – with the right strategy, right culture and the right business model.

The Indian economy is on a sustainable and higher growth trajectory. It grew by 6.8% during FY2018-19, as per the Central Statistics Office (CSO), compared with 6.7% growth in FY2017-18, propelled by rising private sector investment and consumption. With benefits of structural reforms kicking in, such as the Goods & Services Tax (GST) and bank recapitalisation, domestic demand grew and sustained the growth momentum. Today, India continues to be the fastest growing major economy, being in a sweet spot within the global economic landscape. Its US$ 2.5 trillion economy makes it the world’s 6th largest in terms of nominal GDP, with retail consumption set to grow by almost twice the GDP growth for the next decade.

Year in Review
Entertainment is one of the fastest growing industries, and leisure is currently one of the most exciting sectors in India. At Delta Corp, we continued the trend with healthy top-line growth, coupled with strong operational performance, which helped us report robust earnings. The breaching of a landmark milestone of 1,000 Crores Gross Revenue validates our confidence and conviction in the fast-growing gaming and hospitality space in India.

We sincerely thank each one of you for your continued faith and belief in the Company.

We performed well across all metrics. Total Income at 829.1 Crores grew 30% from 636.3 Crores in the previous year, led by growth in casino gaming revenues, on the back of 35% YoY growth in visitations at 4,31,000 people. Our EBITDA grew 27% at 350 Crores; while PAT grew 26% at 196.8 Crores. Earnings per Share (EPS) was 7.30, compared with 5.92 in the previous year. Consistent growth re-affirms our well-established business model centred around providing world-class gaming and entertainment experience right here in India.

Today, we have achieved a pole position in the industry and have emerged as one of the fastest growing casino companies. We have established ourselves as the leaders in gaming and entertainment with over 2,000+ gaming positions across offshore and online gaming locations in Goa, Daman, Sikkim and Nepal (commencing shortly). We have complemented our gaming strength with topclass hospitality with approx. 275 suites/rooms to offer a matchless experience.

Surge. Surmount. Surpass.
We continued to surge ahead by surmounting challenges and surpassing obstacles. Our confidence and conviction, our experience and expertise, and most importantly, our drive and determination, ensured that we continue to SURGE. SURMOUNT. SURPASS. The crossing of the 1,000 Crores milestone in Total Gross Revenue is another strong validation that we are climbing and rising. As we look into the distance, we see ourselves constantly traversing a progressive and forward-looking journey. While our future is all about opportunities and growth, our progress is about exploring and sustaining them.

Strategic Overview
With over 2,000+ gaming positions, we have well established our leadership in offshore and onshore gaming casinos in India. Today, we hold three of the six offshore gaming licenses issued in Goa, thus having dominated the gaming and entertainment space and having cemented our first-mover advantage. We have further expanded our gaming capacities by adding casinos at attractive locations, such as Nepal and Sikkim. In fact, we are increasing the size of our Sikkim Casino, as we poise ourselves for a footfall increase in view of the recent operationalisation of Pakyong Airport.

At Daman, we have a presence by way of a luxury hotel, which is “casino ready” as we await a Government approval for operating a casino. While we are in hospitality business, which complements gaming, we would like to mention that our hotels in Goa and Daman are now breaking even at EBITDA level and generating cash profit. With Daman being recognised as a weekend getaway, and with our hotel being the only 5-star property within a long stretch, it has fast emerged as a perfect destination for large-scale weddings and also caters to the MICE segment.

As a significant achievement, we forayed into cruise gaming through investment in Jalesh Cruises, by becoming their preferred partners for gaming centres and casinos for all their cruise liners. We expect this to usher in a new era in gaming and lead to a rise in our patrons.

With growing Internet penetration and data availability becoming easier and with our gaming portal Adda52 performing well, we continue to maintain our focus on digital gaming. During the year, we invested in fantasy gaming portal HalaPlay and expect this business to derive benefits from ongoing Cricket World Cup 2019 and the upcoming Cricket T20 World Cup.

Today, we are well established not just as a casino company, but as an entertainment destination for delivering an unparalleled experience to the entire family. We have acquired 100 acres of land for setting up a fully-integrated resort, with the finest of entertainment, food, fashion, music and shows and casinos (subject to the policy).

A Promisable Future
We are continuously exploring newer ways and means to establish new channels of growth and value creation. We look to the future with positivity and confidence. Going forward, we estimate growth to be driven by an increased momentum, rising footfalls and improving gaming revenue in Goa. Our investments in cruise gaming, new casinos, and online fantasy game will also contribute to profitability. We are confident of maintaining the growth trajectory achieved in the past few years, as we foresee several positives. With a strong portfolio of assets, we will continue to be reckoned as a powerful force in India’s gaming and entertainment industry.

Before I conclude, I wish to thank all of you for your continued support and encouragement. With a renewed sense of optimism and ambition, we are committed to grow and create value for our stakeholders.

Thank you for being a part of our ongoing success story.

Yours sincerely,

Jaydev Mody
Chairman