Nazara’s PAT also rose 15.8% from INR 20.9 Cr in Q1 FY24, as esports vertical drove the company’s growth
Operating revenue grew 13% to INR 297.2 Cr in the reported quarter from INR 263.8 Cr in Q2 FY23
The adtech vertical saw a contraction in the September quarter, with revenue dipping 36.5% YoY and 18.4% QoQ to INR 22.5 Cr
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Gaming major Nazara Technologies’ consolidated profit after tax (PAT) jumped 53% to INR 24.2 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24) from INR 15.8 Cr in the year-ago quarter, with the esports vertical driving the growth.
The company’s PAT also rose 15.8% from INR 20.9 Cr in Q1 FY24.
Nazara’s operating revenue grew 13% to INR 297.2 Cr in the reported quarter from INR 263.8 Cr in Q2 FY23. This was almost a 17% jump from INR 254.4 Cr operating revenue the company posted in the June quarter of the current fiscal.
The esports vertical witnessed the highest growth during the quarter, with revenue jumping almost 26% year-on-year (YoY) and 46% sequentially to INR 172 Cr.
On the other hand, the gaming vertical, which includes NODWIN gaming and SportsKeeda, registered a 13.8% YoY rise to INR 104.3 Cr in revenue. However, this was a slight dip on a quarter-on-quarter (QoQ) basis.
Meanwhile, the adtech vertical saw a contraction in the September quarter, with revenue dipping 36.5% YoY and 18.4% QoQ to INR 22.5 Cr.
The company’s EBITDA rose 30% YoY to INR 27.9 Cr in Q2 FY24.
During its Q2 earnings announcement, Nazara reiterated that it is bolstering its acquisition playbook.
Nitish Mittersain, founder, CEO and joint MD of Nazara, said that with a consolidated cash position of around INR 1,300 Cr, Nazara is “exceptionally well-positioned” to seize acquisition opportunities and expedite its growth in the years ahead.
It must be noted that during the reported quarter, Nazara raised a fresh capital of INR 510 Cr from investors including Zerodha’s Nikhil Kamath and SBI Mutual Fund.
Recently speaking to Inc42, Mittersain said the gaming company was planning to deploy a large portion of the freshly raised capital for new investments, with some acquisitions, especially in gaming studios.
During its Q2 FY24 earnings, Nazara also announced granting 9,000 employee stock options (ESOPs) under the Nazara Technologies Employee Stock Option Scheme 2023 to the eligible employees of the company.
The ESOPs have an exercise price of INR 833.35 per option.
Nazara’s Expenses In Q2
The gaming unicorn’s expenses grew 9.7% to INR 288.3 Cr in the reported quarter from INR 262.7 Cr in Q2 FY23.
At INR 84.7 Cr, content, event, and web server expenses accounted for the largest chunk of expenditure.
Meanwhile, the company’s spending towards the purchase of stock in trade more than doubled YoY to INR 69.7 Cr in Q2 FY24.
Nazara’s employee benefit expenses jumped to INR 48.9 Cr during the quarter under review from INR 34.4 Cr in the previous year’s quarter.
However, the company managed to bring down its advertising and business promotion expenses to INR 47.4 Cr in Q2 FY23 from INR 71.3 Cr in the year-ago quarter.
Shares of Nazara ended today’s session marginally lower at INR 831.3 on the BSE.
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