Delta Corp Reports Mixed Q3 FY24-25 Results Amid Operational Challenges and Profit Decline

Delta Corp, a small-cap player in the hotel, resort, and restaurant industry, has reported a challenging financial performance for the third quarter of FY24-25. The company's evaluation changes indicate a shift in its financial score, moving from -22 to -11 over the past three months.
On a positive note, Delta Corp achieved its highest operating profit to interest ratio in five quarters, recorded at 21.85 times, reflecting an improved capacity to manage interest payments. Additionally, the profit after tax (PAT) reached Rs 35.73 crore, marking a notable increase compared to the average PAT of Rs 28.91 crore from the previous four quarters.

However, the company faced significant challenges, with profit before tax (PBT) declining by 30.1% to Rs 16.76 crore compared to the previous four quarters. Net sales for the nine-month period stood at Rs 562.63 crore, reflecting a year-on-year decrease. Furthermore, the operating profit margin fell to 16.53%, the lowest in five quarters, indicating a decline in operational efficiency. The high proportion of non-operating income, accounting for a substantial part of PBT, raises concerns about sustainability. Additionally, the debtors turnover ratio has decreased, suggesting a slowdown in the collection of receivables.

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