Nazara Tech shares rise 6% after Q3 net profit surges 45%

In the last three months, the stock has gained 9 percent on the exchanges.

Shares of Nazara Technologies Limited traded 6 percent higher at Rs 917 in the morning trade on February 7 after the company announced a 45 percent surge in net profit for the October-December quarter.

The company reported a net profit of Rs 29.52 crore for the third quarter, driven by a robust performance in the e-sports vertical. However, lower profits in the gaming and adtech segments partially offset this positive outcome.

At 9:20am, the stock was trading at Rs 900, up 4 percent from the previous close on the NSE. In the last three months, the stock has gained 9 percent on the exchanges.

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The company recorded revenue from operations at Rs 320.4 crore in the quarter, reflecting a 2 percent on-year increase from Rs 314.8 crore. Its EBITDA (earnings before interest, taxes, depreciation, and amortisation) jumped 24 percent to Rs 37.7 crore from Rs 30.5 crore a year back.

In the reporting quarter, Nazara Technologies raised Rs 250 crore from various investors, both new and existing ones. Notable participants included Zerodha co-founder Nikhil Kamath, Plutus Wealth, and ICICI Prudential Mutual Fund.

This gains significance as the company achieved its fundraising target for FY24, garnering a total of Rs 760 crore, which included Rs 510 crore from SBI Mutual Fund and Nikhil Kamath in the previous year.

Nazara's real-money gaming segment experienced a decline in revenue, dropping to Rs 7.6 crore from the Rs 15.1 crore last fiscal, led by the impact of the government's implementation of 28 percent GST regime effective from October 1.

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