Delta : Transcript of Analysts/Institutional Investor Meet/Con. Call

2 DELTA CORPLIMITED

18th April, 2022

National Stock Exchange of India Ltd.

Listing Department.

Exchange Plaza, C-1, Block- G, Bandra Kurla Complex,

Bandra (East) Mumbai-400 051.

Fax No. 26598235/8237/8347.

S bol: DELTACORP

BSE Ltd.,

Corporate Relation Department, Listing Department,

Phiroze J ejeebhoy Towers, Dalal Str et, Mumbai- 400 001 . Facsimile o.22723121/22722037/2041 Scrip Code 532848

Dear Sir/ Madam,

Sub: Transcript of Conference Call

Please find attached transcript of Delta Corp - 4QFY22 Post Results Conference Call h eld on 12th April, 2022.

Kindly treat this as the compliance under Regulation 30 of the SEBI (Listing Obligations and Disclosw-e R quirements) Regulations, 2015.

You are r quested to take the same on record and oblige.

Thanking You.

Yours Sincerely,

For Delta Corp Limited

Dilip Vaidya

~~

Company Secretary & GM - Secretarial

FCSNO.7750

Encl- As above

Regd. Office : 10, Kumar Place, 2408, General Thimayya Road, Pune- 411001 .

Bayside Mall, 2nd Floor, Tardeo Road, Haji Ali, Mumbai • 400 034 . UR L:www.deltacorp.in

Phone : +91 22 4079 4700 Fax : +91 22 4079 4m Emal l : secretarlal@deltin.com CIN : L65493PN1990PLC058817

"Delta Corp Limited

Q4 FY2022 Earnings Conference Call"

April 12, 2022

MANAGEMENT:MODERATOR:MR. HARDIK DHEBAR FINANCIAL OFFICER, CORPORATION LIMITED

-CHIEF DELTAALPESH THACKER - ANTIQUE STOCK BROKING LTD.

Moderator:Alpesh Thacker:Hardik Dhebar:

Ladies and gentleman, good day and welcome to Delta Corp limited Q4 FY22 Analyst Conference Call hosted by Antique Stock Broking Limited. 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. Please note that this conference is being recorded.

I now hand the conference over to Mr. Alpesh Thacker from Antique Stock Broking Limited. Thank you, and over to you, sir.

Thank you, Faizan. Hello, everyone. And welcome to fourth quarter FY '22 investors 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 a brief opening remarks by the management followed by Q&A.

Without much ado, let me hand over the call to Mr. Dhebar. Over to you, sir.

Good afternoon, everybody. And thank you Alpesh for organizing this call. I'm sure most of you all would have gone through the results yesterday, and some of the media interaction that happened this morning. Based on the set of numbers that were published, one thing I would like to clarify, which I have -- which we as Delta Corp have through our press notes also, and also through our interaction clarified that these numbers, one has to look at it from a perspective that we had a couple of events that happened during the quarter between January and February, which were basically bottlenecks or hurdles from a regular business perspective.

One, we -- as we all know that the Omicron hit the country in the month of January and it was at its -- almost at its peak during that period and therefore a lot of travel and hospitality related activity came to almost a standstill. And our business obviously forms a part of that vertical.

And we are dependent upon tourist and flows coming in from all over the country into Goa, which basically was impacted, and therefore we saw the visitations drying up almost completely for the month of January. In addition to that, Goa also had the elections and therefore the code conduct also was in play. So all along from about 8th January to 14th February, the Election Code of Conduct was in play, which further added to the restrictions in addition to the COVID-related restrictions, which already existed.

Both these events put together significantly impacted the first 30, 40 days of operations. And therefore if one was to normalize these 30, 40 days of operations of sorts, and were to then look at the revenue, we -- one would appreciate that the revenue number would have been in line with what we did in October, November, December, or even better than that.

And since we all know that our business is a very high operating leverage business, the dip in the revenue that one has witnessed on account of these events will directly reflect into the EBITDA and the profitability margins as well. And therefore, if I normalize it, the EBITDA margins also would have been in line with what we did in the third quarter of this financial year.

Having said that, post February 14, 15, we started seeing the pickup in the visitations, and we -- it was very reassuring and encouraging to see that we almost bounced back to the October, November, December levels in terms of the run rates. And March has been very, very strong and good as far as the numbers are concerned. And therefore it is just a comfort and confidence that we derived that, things are not going to go downhill any further.

12 days into April, we are seeing the trend continue in terms of visitation. And we are very, very confident with regards to the numbers that we will be able to achieve in the first quarter and the financial year per se. And we believe that the trend that we

Moderator:Pritesh Chheda:

set in, in the October, November, December quarter will be able to be continued going forward.

With regards to the hospitality business also, it's again, reassuring to see that Daman which we acquired in -- which we commenced operations in 2014, and was always a loss making unit till some years ago where it started breaking even, has now started contributing at the EBITDA level positively, and almost breaking even post depreciation as well. The business there is robust and sound and is doing well. And as and when the economy keeps growing and opening up more and more, this business also will hopefully be doing better and better from here on.

With regards to online gaming business, again, last year first quarter was an aberration. We saw a spurt given the lockdown and everything, and we realized that we ended up with a number like INR 57 crore, INR 58 crore of top-line, which was an aberration, which tapered down as and how -- as and when the things started opening up. And it kind of settled at around INR 37 crore, INR 38 core, and last quarter of this financial year was INR 35 crore.

From there on, we have been able to grow. In this quarter, we reported a number of INR 42 crore. Again, we are consciously monitoring and spending on the marketing sales promotion activity. And therefore we believe that we should be able to achieve the INR 42 crore, we have achieved the INR 42 crore number, and we believe that there is growth potential here on with our renewed focus on the sales promotion marketing activities and trying to grow the business.

As I had already mentioned earlier, we have launched the multi-gaming platform vertical, which is basically going to be acting as the funnel for growth. The platform, which will attract large number of players because unlike Rummy and Fantasy, as you would all appreciate, poker is not a game which can be mass marketed and carpet bombed, which is where we will be using the multi-gaming platform and the other games that have been now introduced as the marketing tool of sorts, which will attract larger number of registrations, get players on, and we'll onboard the players. And a percentage of that we'll try and diversion into the poker vertical thereby trying to maintain the profitability.

As you all know we in January have passed a resolution at Delta Crop level of taking this company known as Gaussian Networks erstwhile, now is christened as Deltatech Gaming Private Limited, public, whereby we'll be doing a mix of OFS and a primary issuance with a clear understanding and with a clear view that we create a war chest for future potential growth that we believe is achievable in this business. We are well on the way with our intermediaries and partners in this process of the IPO. And hopefully sooner rather than later, we'll be making all the regulatory necessary filings and documentation completion on road to our listing process.

That's predominantly the highlights of the quarter gone by, and I would now like to take the questions if there are any from the participants. And I'll try and answer to the best of my ability, please.

Thank you very much. We will now begin the question and answer session. First question is from the line of Pritesh Chheda from Lucky Investment. Please go ahead.

Yes, hi. Thank you for the opportunity. I have two questions. One, if you could give some color on March, which was a more normalized month without any challenges. What would be the visitation numbers and the revenue run rate? That would give us some color on how the things are going to pan out.

And my second question is, there were some press reporting about some changes in the casino policy expected in Goa. So that report was it respected to water casinos or that policy supposed to be with respect to the land casinos? If you could help us those two questions. Thank you.

Hardik Dhebar:Pritesh Chheda:Hardik Dhebar:Pritesh Chheda:

Moderator:

Viraj Mehta:Hardik Dhebar:Viraj Mehta:Hardik Dhebar:Viraj Mehta:

So I don't know what article or what is being referred to in terms of the change of the casino policy. I haven't come across anything of that sort. So if you could elaborate and throw some light on that, it'll be great, and it'll help me to answer that question better. But if by policy, you mean the land based casino policy, there is no further change from what has been the status in the state for the last many months, and probably a couple of years.

With regards to our 100 acre parcel, we have got the approval from the cabinet. And we are waiting for the official communication to come by. And we are ready as far as our project is concerned to commence work.

With regards to the numbers in March, we typically don't give out granular details on calls, but I can only tell you very comfortably that our GGRs are back to almost the pre-COVID levels. And the GGR is in line with what we did in October, November, December, and so are the visitations. Of course, visitations have not yet reached the pre-COVID levels because the restrictions still are in play. But I think we are inching towards those numbers comfortably. And like I said, the revenue in March has been almost the highest revenue that we would've achieved for a particular month. So if you look at the October, November, December quarter, we did about INR 249 crore of gaming revenue. So that would be give and take INR 80 plus crore of revenue that we would've done on an average. We have reached those kind of numbers in March once again, and the trajectory and the trend is continuing into April.

Just one clarification, is it fair to assume that March will be higher than that quarterly or monthly number of INR 80 crore, INR 85 crore?

It would be in the ballparks. I would not -- exact number if you want, I can pull out the exact number for the month of March, but I think it'll be in the ballpark of INR 85 crore, INR 86 crore.

No problem, sir. Thank you very much. And all the best. Thank you.

Thank you. The next question is from the line of from Viraj Mehta from Equirus PMS. Please go ahead.

Thank you, and congratulations, Hardik, for the numbers. Just one question in terms of the new ships. In the media interaction, you said that it'll be Q2 of '24, whereas in our last interaction in the call you had said, it'll be January. So now is it like postponed by six more months?

No, I had said in that calendar year, and never have, I -- I don't remember saying January per se because I was very sure that it'll not be January. Having said that, what I can definitely confirm is that we will be ready prior to the monsoons or just around the monsoon, but it is because of a technical reason that the ship will not be able to sail into the river, given that it'll be a sandbar formation, and therefore we will have to push it to almost post monsoon, around July, August, or August, September. And therefore I mentioned in the media interaction, that it'll be Q2 is when it'll become operational. Q2 or more like Q3, technically. But other than that it is on track and there has been no delays as far as the ship is concerned.

Sure, sure. And as far as what -- will it be a replacement for one of our smaller ships? So how will the capacity go up?

That has already been stated multiple times on earlier calls, as well as at multiple places. It is going to be an additional -- it's a replacement for our existing vessel. And in terms of capacity, our current capacity is about 1,800 to 2,000 gaming positions. That should go up by at least 2.5 times.

Thank you so much Hardik, and best of luck.

Moderator:

Thank you. The next question is from the line of Ankit Babel from Subhkam Ventures. Please go ahead.

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