Why Did Gaming Firm Nazara Technologies Experience a 54% Profit Decline in Q4 FY25?
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Synopsis
Nazara Technologies has reported a significant quarterly profit drop of 54% for Q4 FY25, raising questions about the factors impacting its financial performance. While operational income has seen a yearly increase, the quarterly decline and rising expenses signal deeper issues within the company. Explore the details of this financial report and its implications.
Key Takeaways
- Profit decline of 54% in Q4 FY25 compared to Q3.
- Operational income decreased to Rs 520 crore.
- Year-on-year profit increase of nearly 22 times.
- Total income rose by 77% annually.
- Expenses increased by 85% year-on-year.
Mumbai, May 26 (NationPress) - On Monday, gaming enterprise Nazara Technologies revealed its financial outcomes for the March quarter of FY25. The company's profit plummeted by 54 percent on a quarterly basis, landing at Rs 4 crore for the January-March period, a sharp decline from Rs 8.8 crore recorded in the prior quarter (Q3).
The operational revenue for the company in the March quarter stood at Rs 520 crore, a decrease from Rs 535 crore reported in the December quarter, indicating a 2.8 percent drop.
Nevertheless, on an annual scale, the company's profit saw a remarkable increase, soaring nearly 22 times compared to the same period in FY24, when it was just Rs 18 lakh.
In terms of annual growth, the operational income surged by 95 percent in the March quarter, climbing from Rs 266 crore in FY24.
Total income for the company dipped approximately 3 percent to Rs 538 crore during the January-March period, down from Rs 556 crore in the previous quarter.
However, when compared year-on-year, the total income experienced a significant increase of 77 percent, rising from Rs 303 crore in FY24.
Expenses for the company also decreased by around 2 percent on a quarterly basis, settling at Rs 527 crore for the January-March period as opposed to Rs 537 crore previously.
Yet, year-on-year, expenses surged by 85 percent in the March quarter, climbing from Rs 284 crore in FY24.
For the entire fiscal year FY25, the total profit was Rs 51 crore, which is 31 percent lower than the Rs 74 crore recorded in FY24. Despite this, total income rose from Rs 1,218 crore to Rs 1,715 crore.
In a recent exchange filing, the company disclosed a loss of Rs 9.7 crore in the March quarter due to discontinued operations.
According to the March shareholding details available on the screener portal, the promoter's stake in Nazara Technologies is currently at 8.78 percent. Foreign institutional investors (FIIs) hold 13.04 percent, domestic institutional investors have 12.44 percent, and the public holds 65.74 percent.
Point of View
It is vital to recognize the complexities in the financial landscape of gaming firms like Nazara Technologies. Despite a robust annual growth narrative, the recent quarterly decline calls for a deeper look at operational strategies and market conditions. NationPress remains committed to providing balanced reporting that highlights both challenges and opportunities within the sector.
NationPress
08/09/2025
Frequently Asked Questions
What caused Nazara Technologies' profit drop in Q4 FY25?
The profit drop was primarily attributed to discontinued operations and rising expenses, despite an increase in annual income.
How does the profit for FY25 compare to FY24?
For FY25, Nazara Technologies reported a profit of Rs 51 crore, which is 31% lower than Rs 74 crore recorded in FY24.
What was Nazara Technologies' operational income in Q4 FY25?
The operational income for Q4 FY25 was Rs 520 crore, slightly down from Rs 535 crore in the previous quarter.
What is the current shareholding pattern of Nazara Technologies?
As per the latest data, promoters hold 8.78%, FIIs hold 13.04%, domestic institutional investors hold 12.44%, and the public holds 65.74%.
How much did Nazara Technologies' income increase year-on-year?
The company's income grew by 95% in the March quarter of FY25 compared to the same period in FY24.
