Delta Corp shares dropped 5% on 10 January after the company announced its quarterly report for October-December.

In its quarterly report, the company reported a 59% year-on-year decline in consolidated net profit to Rs 34.48 crore during the quarter from Rs 84.82 crore reported in the same quarter last year.

The company’s revenue from operations during the quarter stood at Rs 234.41 crore, marking a 15.58% YoY decline from Rs 277.68 crore reported in the same quarter of the previous fiscal year.

Anil Malani, President and Chief Financial Officer of Delta Corp, said, “the company faced a downturn in the Oct-Nov quarter due to the impact of a higher GST regime. Revenue slumped as customers were required to pay a 28 percent GST upfront on chips.”

The company is currently dealing with total claims amounting to around Rs 23,000-24,000 crore in terms of GST chow-cause notices, with all cases set to be heard next month.

Malani expects the revenue during the last quarter to be the same as Q3 and mentioned the possibility of pivoting to the realty business, looking at a lack of opportunities for casino growth in India.

The company’s two biggest business divisions, casino and online gaming, which has seen a sharp drop in revenue.

At 10:58 am, Delta Corp shares were trading 2.42% higher at Rs 147.00 on NSE.