News

Published: May 10, 2023
Updated: May 10, 2023

Nazara Technologies Reports Strong Q4 Results with 65% Revenue Growth

Nazara Technologies has reported a significant increase in revenue and net profit for the quarter ending in March 2023. The company's IPO was oversubscribed 175 times, indicating strong investor interest in the company.

The company's consolidated revenue from operations increased by 65% to ₹289.3 crore for the quarter under review, compared to ₹175.1 crore in the same period last year. Nazara Technologies also reported a 56% YoY growth in revenue for its Gamified early learning segment and a 53% YoY growth in revenue for its eSports business.

e-Sports and Gamified Early Learning segment report a sequential dip in revenue

Despite the strong YoY growth in revenue, both the Gamified early learning segment and the eSports business reported a sequential dip in revenue. This could be a cause for concern for investors, and the company may need to take steps to address this in the coming quarters.

Nazara Technologies also reported an increase in operating profit, with EBITDA coming in at ₹27.2 crore, up from ₹12.9 crore in the year-ago period. However, margins were lower at 9.4% compared to the previous year.

The company's total expenses for the quarter increased to ₹281 crore from ₹174 crore a year ago. Advertising and promotional spending decreased slightly to ₹47.3 crore from ₹51.6 crore a year ago, while staff expenses increased to ₹43 crore from ₹27 crore a year ago.

Growth in profit ; however dip in revenue growth cause of concern

Nazara Technologies has reported strong Q4 results with a significant increase in revenue and net profit. The company's IPO success demonstrates strong investor interest in the company's future prospects. However, the sequential dip in revenue for its key business segments could be a cause for concern. The company may need to take steps to address this in the coming quarters to maintain its growth trajectory.