Financial

Outcome of Board Meeting held on Thursday, November 14, 2024

By Nazara Technologies Limited

14 November 202422 pages13,024 words

Summary

Nazara Technologies Limited is undergoing a period of aggressive strategic expansion and operational consolidation, as evidenced by its financial performance for the quarter and half-year ended September 30, 2024. The company reported a 7% year-over-year increase in consolidated revenue, reaching ₹56,902 lakh, with the eSports segment serving as the primary growth engine. While standalone net profits saw a substantial increase to ₹1,273 lakh for the quarter, total comprehensive income experienced a slight decline due to rising operational costs and losses from discontinued operations. This financial landscape is further complicated by significant industry-wide regulatory challenges, specifically outstanding Goods and Service Tax show cause notices totaling approximately ₹1,120 crore across two subsidiaries. The corporate strategy focuses heavily on streamlining the portfolio through both high-value acquisitions and the divestment of non-core assets. Key developments include the full acquisition and subsequent merger of Paper Boat Apps, the strategic purchase of Fusebox Games, and the integration of Freaks 4U Gaming. To fuel this inorganic growth and support future projects, the board authorized a substantial fundraise of ₹90,000 lakh through preferential equity issuance. This capital injection is intended to bolster a balance sheet that saw a net cash outflow from operating activities during the first half of the fiscal year. Geographically and operationally, the company is positioning itself as a global gaming and eSports powerhouse, evidenced by its investment in Moonshine Technology and the expansion of its international stepdown subsidiaries. By divesting stakes in entities like Crimzoncode Technologies and NzMobile Kenya while simultaneously consolidating domestic holdings, the organization aims to optimize its corporate structure. This dual approach of aggressive capital deployment and internal restructuring defines the current fiscal period, as the entity seeks to balance rapid scaling with the management of significant tax-related legal contingencies.

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Outcome of Board Meeting held on Thursday, November 14, 2024

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