Nazara Technologies Posts Large Decline

Digital gaming and sports platform Nazara Technologies posted about a 17% decline in net profits during the third quarter of 2021 while its consolidated revenue from operations grew 42%. Nazara reported revenue growth was driven by strong traction in Nodwin Biz & Sportskeeda. Its EBITDA margin improved to 16.3% due to better profitability in esports, highlighted analysts at Dolat Capital in a note.

“Nazara offers an opportunity to buy on a portfolio approach thus neutralizing the risk while opening up doors to play a part in megatrend of gaming in India with significant optionality,” wrote Dolat Capital. “The brokerage has maintained ‘Buy’ rating on the stock…”

The company has witnessed 75% year-on-year growth in its esports segment for the nine months of the financial year 2021, led by strong growth in revenues across all sub-segments in Nodwin and SportsKeeda, Nazara Technologies Group CEO Manish Agarwal said in an earnings release.

Shares of Nazara Technologies have declined about 7% in five days whereas they are down over 23% in the last month. As per BSE shareholding patterns, ace investor Rakesh Jhunjhunwala owns a 10.10% stake in the company as of December 2021.

(All information was provided by Live Mint)

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