Nazara posts flat scale in FY24; profit grows 23%

Nazara Technologies Limited, a gaming and sports media company, posted a modest growth of 4.3% during the previous fiscal year ending March 2024. However, a 62% surge in non-operating income helped Nazara post a decent increase in its bottom line.

Nazara’s revenue from operations increased 4.3% to Rs 1,138 crore in FY24 from Rs 1,091 crore in FY23, its consolidated financial statements filed with the National Stock Exchange show.

On a sequential basis, the firm saw a 17% decline in its revenue to Rs 266 crore in Q4 FY24 from Rs 320 crore in Q3 FY24.

Income from e-sports contributed 55.5% of its total operating revenue which increased 19% to Rs 632 crore in FY24 while the collections from gaming and adtech stood at Rs 406 crore and Rs 100 crore, respectively.

The company also made Rs 80 crore from interest and gain on financial assets, tallying its total revenue to Rs 1,218 crore in FY24 from Rs 1,140 crore in FY23.

Content and server costs became the largest cost center for Nazara, accounting for 35% of the overall expenditure. This cost remained flat at Rs  390 crore in FY24.

Its employee benefits, advertising, cost of material consumed, commissions, and other overheads took the overall expenditure to Rs 1112 crore in FY24 from Rs 1052 crore in FY23.

Despite the flat scale, the controlled cost and surge in other income helped Nazara post a 23% increase in its profit to Rs 75 crore in FY24 from Rs 61 crore in FY23. Its ROCE and EBITDA margins stood at 5% and 14.5%, respectively. On a unit level, it spent Rs 0.98 to earn a rupee in FY24.

At the time of market close on May 25, Nazara was trading at Rs 615.2 with a market cap of Rs 4,708 crore.