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Management Outlook and Major Points:

1. GST Impact & Operational Adjustments:

• The new 28% GST on chip sales (vs. 21.875% on GGR earlier) increased costs by ~6% of GGR.
• Initial customer reluctance due to GST led to lower Q3 visitation (124,000 visits, down 4% QoQ and 6% YoY). Adjusted pricing strategies (promotional chips) stabilized December run rates.

2. Recovery Timeline:

• Expect normalization by July 2024, with revenues returning to pre-GST levels. Growth acceleration anticipated post-launch of the new vessel in Q3 FY25, doubling capacity.

3. Expansion Projects:

• New Vessel: Rs.280-290 crore investment (Rs.175 crore spent), to be operational by Q3 FY25, adding gaming, retail, and event spaces.
• Goa Hotel: Converting a residential project into a 5-star hotel (Rs.450 crore total outlay; completion in 18"“24 months).
• Integrated Resort: Phased development starting with a water theme park (Rs.175 crore spent on land/clearances).

4. Financial Position & Margins:

• Strong liquidity (Rs.500 crore post-investments).
• EBITDA margins expected to stabilize at 35"“36% (vs. 41% pre-GST) due to fixed-cost leverage.

5. Diversification:

• Real estate JV with Peninsula Land targeting high-IRR redevelopment projects (Rs.250 crore initial commitment).

6. Legal & Regulatory:

• Retrospective GST disputes ongoing in courts; stay orders secured.

7. Online Gaming:

• Growth paused pending industry consolidation; focus on profitable poker operations.

Outlook: Near-term challenges from GST transition offset by capacity expansion (new vessel) and diversification. Long-term growth hinges on Goa's tourism recovery and real estate execution.

Question 1:
Dixit Doshi: "As you mentioned that this is the first complete quarter after the new GST introduction, if you can broadly take one example of let's say Rs. 1,000 or Rs. 5,000 and help us understand how it was charged earlier and how on the ground level now we are charging the GST and how much actually consumer gets to play. If you can take one example and help us understand?"
Answer: Pre-October, GST was 28% on gross gaming revenue (GGR), effectively costing 21.875% of GGR. Post-October, GST is 28% on total chips sold. GGR equals ~70% of chips sold, so GST now applies to the remaining 30% (chips encashed), increasing costs by ~6% of GGR. Customers receive full chip value but must lose promotional chips (compulsory play), recovering GST costs.

Question 2:
Pritesh: "Can you just share the visitation number and the net realization per visitation for this quarter and the same quarter last year?"
Answer: Q3 FY24 had 124,000 paid visitors (4% lower QoQ, 6% lower YoY). Spend per head was similar grossly, but net revenue declined ~6% due to GST. December 2023 saw recovery to pre-GST run rates.

Question 3:
Anushree: "How much of the total CapEx of the new ship is pending? By when do you expect it to be done?"
Answer: Total ship CapEx: Rs.280"“290 crores (Rs.175 crores spent). Expected completion: Q3 FY25, with revenue contribution starting Q3/Q4. The ship doubles capacity, adding retail, F&B, and event spaces.

Question 4:
Puneet Shah: "What was the GST amount paid for this quarter? How have packages changed post-GST?"
Answer: Offline GST: Rs.58 crores (Rs.8 crores higher QoQ); online GST: Rs.18 crores (Rs.12 crores higher). Pre-GST packages included gaming offers (e.g., Rs.500 for Rs.1,500 chips). Post-GST, offers were removed, replaced with 10% booking discounts.

Question 5:
Bhavesh Patel: "What is the update on retrospective GST demands and the Daman casino case?"
Answer: Retrospective GST cases are sub judice with stays; hearings expected in February 2024. The Daman case, delayed, seeks a new hearing date. Current GST compliance is followed prospectively.

Question 6:
Rishikesh Oza: "When will revenues normalize? What are sustainable EBITDA margins?"
Answer: Revenues expected to normalize by July 2024 (Q2 FY25). Sustainable EBITDA margins: 35"“36% (vs. 41% pre-GST), with growth post new ship launch. Margins depend on fixed-cost absorption.

Question 7:
Rehaan Phophalia: "What is the strategy for the Peninsula Land JV and real estate plans?"
Answer: Focus on redevelopment projects in Mumbai/Goa with 25"“30% IRR. JV investment: Rs.250 crores initially, targeting quick projects (3-year cycles). No immediate plans for Advani Hotels monetization.

Question 8:
Dhaval Dama: "Why has the new ship's cost and timeline increased? Explain diversification into real estate."
Answer: Ship design expanded to include retail, F&B, and event spaces, delaying completion. Real estate (Peninsula JV) and hospitality (Goa hotel) synergize with core business, ensuring revenue diversification.

Question 9:
Agastya Shah: "Why were December 2023 visitations 8% lower YoY despite offers?"
Answer: Overall Goa tourism dipped due to GST concerns, cheaper flights, and competition. December GGR recovered to near-normal run rates despite lower footfall.

Question 10:
Karan Mehta: "Why invest in Peninsula Land and a JV? What's the real estate capital allocation?"
Answer: Peninsula offers execution expertise; Delta provides capital. Focus on high-return redevelopment. Peak investment: Rs.250 crores initially, with flexibility for future opportunities.