Shares of Nazara Technologies Ltd. rose on Monday after its profit surged in the quarter ended June.
The company's first quarter net profit rose 31% year-on-year to Rs 20.9 crore, according to an exchange filing.
It has been a stable quarter for the company and overall gaming business has grown well, according to Nitish Mittersain, founder and chief executive officer of Nazara Technologies.
"We are happy with what we did this quarter," Mittersain said, in an interview with BQ Prime's Alex Mathew.
With a large base of gaming consumers, there is an opportunity for homegrown gaming accessories brands and the market of gaming accessories to grow, Mittersain said.
"We have invested more in marketing and branding in Q1, as Q2 and Q3 are the festive season which have the maximum sales, and we wanted to get ready for that."
Nazara Tech Q1 FY24 Highlights (Consolidated, QoQ)
Revenue down 12% at Rs 254.4 crore.
EBIT up 57% at Rs 17.8 crore.
EBIT margin at 6.9% vs 3.9%.
Net profit up 31% at Rs 20.9 crore.
Shares of Nazara Technologies were trading 3.51% higher at Rs 689.30 apiece as of 12:23 p.m., as compared with a 0.27% advance in the benchmark NSE Nifty 50. The stock surged as much as 5.05% during the day, its highest since June 21. It has risen 18.8% year-to-date.
The total traded volume stood at 2.2 times its 30-day average. The relative strength index at 56.80.
Out of the 12 analysts tracking Nazara Technologies, eight maintain a 'buy' on the stock, three recommend a 'hold', and one suggests a 'sell', according to Bloomberg data. The average of 12-month price targets set by analysts implies a potential upside of 5.8%.
Watch the interview here:
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