DELTA CORP Chairmans Speech

Dear Fellow Shareholders,


It is with great pride and immense pleasure that I present to you Delta Corp Limited''''s Annual Report for the year 2016-17.


This past year has been a distinct and memorable one, for a number of reasons. There have been many headlines that shocked the world - from BREXIT, to the election of the 45th President of the United States, to demonetization and the introduction of Goods and Services Tax in India. But, this year has also been amongst the most significant for Delta Corp, as the Company reached an inflection point in terms of both, financial performance and growth. We now stand at the cusp of a New Horizon for the Company and we expect to propel to never been seen heights....


This year, an array of key developments occurred for the Company.


- Deltin Caravela, India''''s first offshore gaming casino, was relaunched as a boutique, luxury Hotel, aimed to attract the discerning elite.


- We acquired Gauss Network, which owns India''''s leading online poker website, Adda52.com. 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. By the fourth quarter of FY2016, the casinos saw a record number of patrons returning, marking not only a revival of visitation, but pushing the Company onto a higher trajectory.


Driven by these events. Delta Corp delivered a remarkable financial performance for the year, with the income from total operations at Rs 45, 960.14 Lakhs, compared to Rs, 38,215.07 Lakhs in the previous year, an increase of 20%. Profit Before Tax (PBT) for the year increased toRs, 9,781.71 Lakhs, against a PBT ofRs, 5,030.70 Lakhs in the previous year, a rise of 94.5%. The Net Profit for the year stood at Rs, 7,087.67 Lakhs, a 100.5% increase from Rs, 3,533.85 Lakhs in the year prior. Earnings Per Share (EPS) was t 3.19, as compared to Rs, 1.66 in the year before. Furthermore, the Company has declared a dividend of Rs, 0.35 per equity share, subject to the approval of the shareholders.


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 The 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. After our exit from the real estate business in FY 2014, our focus is honed in on gaming, as well as gaming-related hospitality businesses, which are an integral part of the overall gaming experience. With that in mind, we have invested in marquee hospitality assets. 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. With a steady income stream, and the exponential development of the gaming market in India, I have no doubt that the graph is poised for a steep upward curve. With strong entry barriers, such as licenses and investment hurdles, the gaming space challenges new entrants. Therefore, Delta Corp enjoys a competitive advantage, as well as a first mover advantage, owing to the licenses already held by the Company, investments that we have made, the expertise that we have gathered and the solid management and brand that we have established.


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 Chairman

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