Markets

Published: August 2, 2023
Updated: August 2, 2023

"Nazara Technologies Reports Impressive Q1 Results with 31% Net Profit Surge"

Strong Q1 Performance Boosts Nazara Technologies Shares:

Shares of Nazara Technologies Ltd. witnessed a rise after the company reported a remarkable surge in profit for the quarter ended June. According to the exchange filing, the company's net profit for Q1 grew by an impressive 31% year-on-year, reaching Rs 20.9 crore.

Stability and Growth in the Gaming Business:

Nazara Technologies' founder and CEO, Nitish Mittersain, expressed satisfaction with the stable performance of the company during the quarter. He highlighted that the overall gaming business has experienced significant growth, driving the positive financial results.

Promising Opportunities in Gaming Accessories Market:

With a substantial base of gaming consumers, Mittersain emphasized the potential for homegrown gaming accessories brands to thrive. The company sees opportunities in the market of gaming accessories, and to capitalize on the upcoming festive season in Q2 and Q3, they invested more in marketing and branding.

Q1 Financial Highlights:

In the first quarter of FY24, Nazara Technologies witnessed a 12% decline in revenue, amounting to Rs 254.4 crore. However, their EBIT saw an impressive 57% increase, reaching Rs 17.8 crore, resulting in an improved EBIT margin of 6.9% as compared to 3.9% in the previous quarter. The net profit surged by 31%, amounting to Rs 20.9 crore.

Nazara Technologies' Stock Performance:

Following the positive Q1 results, the company's stock showed significant growth. It traded 3.51% higher at Rs 689.30 apiece, with a peak surge of 5.05% during the day, the highest since June 21. Year-to-date, the stock has risen by 18.8%, displaying investor confidence in the company's future prospects.

Analysts' Views and Future Potential:

Analysts tracking Nazara Technologies remain bullish on the stock, with eight maintaining a 'buy' rating, three recommending a 'hold', and one suggesting a 'sell', according to Bloomberg data. The 12-month price targets set by analysts imply a potential upside of 5.8%, indicating optimism for the company's growth trajectory.

Nazara Technologies' exceptional Q1 performance has captured the market's attention, leading to a surge in its shares. The substantial increase in net profit and improved EBIT margin demonstrate the company's ability to navigate the competitive gaming industry successfully. With promising opportunities in the gaming accessories market and the upcoming festive season, Nazara Technologies seems well-positioned for continued growth in the future. Investors and analysts remain optimistic about the company's prospects, indicating a positive outlook for the gaming technology firm.