Nazara Technologies Ltd.'s shares fell 2.2% in early trade on Tuesday after the gaming and sports media company reported a loss for the June quarter, as revenue and operating performance weakened compared with a year ago.
The stock is trading at Rs 332 apiece on NSE, down from Rs 339.55.
Why Is The Stock Falling?
The company posted a consolidated net loss of Rs 79.9 crore for the first quarter, compared with a net profit of Rs 53.5 crore in the corresponding period last year. Revenue from operations declined 14% year-on-year to Rs 429 crore from Rs 499 crore a year ago.
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Nazara's operating performance also came under pressure during the quarter. Ebitda declined 48% year-on-year to Rs 24.7 crore from Rs 47.4 crore a year ago.
The Ebitda margin narrowed to 5.8% from 9.5% in the year-ago period, reflecting weaker profitability amid lower revenue.
The company's earnings mark a sharp reversal from the profit reported in the same quarter last year, with declines in revenue, operating profit and margins weighing on the overall performance.
Board To Consider Fund Raise
The company also said its board will meet on August 6 to consider a proposal to raise funds by issuing equity shares, convertible instruments or other eligible securities on a preferential basis, subject to regulatory and shareholder approvals.
Stock Rallied 21% In The Past Month
Despite today's decline, the stock has gained more than 21% in the past month, and over 11.5% in the past week itself.
The stock traded between Rs 215.7 and Rs 363.25 apiece on the NSE for the past 52 weeks, and is currently trading at a price-to-earnings multiple of 153.3 times.
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