9 July 2019 DELTAs revenue came in flat YoY at 3% YoY we note that growth would have been higher if not for the maintenance work at its vessel Deltin JAQK in dry dock for 19 days, due to which the segment incurred a revenue loss of ~INR190m. EBITDA margin expanded 70bp YoY to 36.3% Casino biz incurred a loss due to maintenance work, and thus, the muted growth therein is not very concerning. Consequently, revenue growth is likely to bounce back from 2QFY20, and we estimate 18% growth in the Casino biz in 9MFY20. Also, margins in online gaming are likely to remain under pressure as the company invests aggressively in advertisement and marketing to remain competitive. The stock price has corrected sharply following media reports of (a) DELTA being issued huge GST demand notice and (b) closure of Goa-based casinos. Maintain Delta Corp Nepal Casino at Fairfield by Marriott, Kathmandu, likely to commence operations in 2QFY20.