Nazara Technologies Shares Gain After Q3 Profit Beats Estimates
The company's third-quarter net profit rose 77.45% to Rs 18.1 crore.
Shares of Nazara Technologies Ltd. gained the most since Jan. 12 after its third-quarter profit and revenue beat analysts' estimates.
The company's third-quarter net profit rose 77.45% to Rs 18.1 crore, beating analysts' estimates of Rs 10.13 crore. Revenue, too, beat estimates after it rose 19.33% to Rs 314.8 crore. As per the Bloomberg data, the pooled consensus of all the analysts tracking the company pegged the company's revenue at Rs 305.33 crore.
Revenue across all business segments rose annually, viz., gamified early learning, eSports, Adtech, freemium, real money gaming, and telco subscriptions. However, Ebidta fell year-on-year for the eSports business segment.
The telco subscription and freemium segments logged the highest annual Ebitda, whereas, the gamified early learning, real money gaming, and eSports verticals clocked the highest revenue in comparison to other segments.
Nazara Technologies Q3 FY23 (Consolidated, QoQ)
Revenues up 19.33% to Rs 314.8 crore [Bloomberg estimates: Rs 305.33 crore]
Ebitda up 119.71% to Rs 30.1 crore
Ebitda margin at 9.56% vs 5.19%
Net profit up 77.45% to Rs 18.1 crore [Bloomberg estimates: Rs 10.13 crore]
"The business continues to scale profitably, as has been our stated goal to deliver long-term compounding across our five key business verticals," Chief Executive Officer Nitish Mittersain said in a press release.
"Our diversified business across multiple geographies allows us to have various levers of growth and mitigate industry headwinds affecting any one segment," Mittersain said.
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Watch the full interview with Nazara's Nitish Mittersain below
Shares of the company gained 1.71% to Rs 622.15 apiece as of 1:25 p.m., while the benchmark Nifty 50 declined over 1%. The total traded volume so far in the day stood at 28.1 times of its 30-day average.
Out of the 11 analysts tracking the company, eight maintained a 'buy' rating, one recommended a 'hold' and two suggested to 'sell' the stock, according to Bloomberg data. The 12-month consensus price target implies an upside of 34.5%.