Nazara Tech shares jump after gaming firm announces upbeat first-quarter results

Unbeat first-quarter results of Nazara Technologies are boding well for the gaming company as its share rose 2.93 per cent to Rs 684 in morning trading. Investors are showing high interest in the scrip, which closed at Rs 664.5 on Friday. The rising price of the share today is also a good sign for the company given that it fell around 13 per cent recently after the central government levied a 28 per cent GST on online gaming.

"The Q1 FY24 performance saw an impact due to the same. Once implemented, this could potentially impact the performance of our skill-based real money gaming segment," the company said in a statement after Q1 results were announced. 

PAT soars 72.6 per cent

Nazara Tech announced its April-June quarter results after market close on Friday, clocking a sharp jump of 72.6 per cent in its consolidated profit after tax at Rs 19.50 crore in the quarter under review from Rs 11.30 crore in Q1 FY23.

The gaming company's consolidated revenue for the first quarter also jumped 14 per cent to Rs 254.4 crore from Rs 223.1 crore in the corresponding period last year.

There was a 10 per cent jump in the tech firm's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBIDTA), which went up to Rs 33 crore in the April-June period from Rs 30 crore in the first quarter last year. 

There was a slight dip in the company's margin as it was 13 per cent in the first quarter against 13.5 per cent in the corresponding quarter last year.

The company also said that its revenue and EBIDTA are likely to rise in the upcoming quarters given seasonality and its decision to defer its major e-sports launches.

Nazara Tech also has a major stake in Sportskeeda. The sports website also delivered strong year-on-year growth of 52 per cent.