Steady Growth and Increased Profit Margin
Renowned gaming and sports media firm Nazara Technologies Limited reported consistent revenue growth of 4.3% for the fiscal year ending in March 2024. Nazara saw a respectable 23% gain in profit in Q4 FY24 despite a sequential fall in revenue, which was mostly attributable to a spike in non-operating income.
Revenue Breakdown and Operating Segments
E-sports contributed considerably to Nazara’s operating revenue, which climbed by 4.3% to Rs 1,138 crore in FY24, accounting for 55.5% of the company’s total revenue. Although sales from the gaming and adtech sectors increased as well, the company’s revenue decreased sequentially in Q4 FY24.
Non-Operating Income and Total Revenue
Nazara’s non-operating sources of income, which included interest and gains on financial assets totaling Rs 80 crore, accounted for a sizable chunk of its total revenue. As a result, the company’s overall revenue in FY24 was Rs 1,218 crore, indicating a little rise over the previous fiscal year.
Expenditure Overview and Cost Management
Nazara experienced substantial costs despite growing its revenue, with content and server charges emerging as the major cost center, accounting for 35% of the total spend. Nonetheless, the business was able to sustain profitability and generate a 23% gain in profit thanks to well-managed costs and managerial techniques.
Financial Metrics and Market Performance
Important financial indicators included the margins for Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Return on Capital Employed (ROCE), which were 5% and 14.5%, respectively. With a market valuation of Rs 4,708 crore and a share price of Rs 615.2, Nazara’s performance on the market demonstrated investor confidence.
Nazara Technologies has a strong presence in the gaming and sports media industries, as demonstrated by its strong performance in FY24. With a strategic emphasis on income diversification and expense control, the business is well-positioned to take advantage of new opportunities and promote long-term growth in the next years.
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