Nazara Technologies Reports Mixed Financial Results Amid Strong Sales Growth in December 2024

Nazara Technologies, a midcap player in the IT software industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's evaluation, with the score reflecting a significant adjustment from the previous period.
The financial data reveals that Nazara Technologies achieved net sales of Rs 534.69 crore, marking a substantial growth compared to the average of Rs 288.91 crore over the last four quarters. This quarter's net sales represent the highest figure recorded in the past five quarters, suggesting a robust near-term sales trend. Additionally, the operating profit reached Rs 37.06 crore, also the highest in the last five quarters, indicating a positive trajectory in operational performance.

On the profitability front, the profit after tax (PAT) stood at Rs 30.68 crore, reflecting a growth of 26.6% over the average PAT of Rs 24.23 crore from the previous four quarters. This figure is the highest recorded in the last five quarters, contributing to an increase in earnings per share (EPS), which reached Rs 3.59.

However, the results also highlight some challenges. The profit before tax (PBT) showed a decline, falling to Rs 3.38 crore, which is a significant drop compared to the average of Rs 5.37 crore from the previous four quarters. Furthermore, the company's reliance on non-operating income, which constituted 86.65% of PBT, raises concerns about sustainability. Additionally, the debtors turnover ratio has reached its lowest point in the last five half-yearly periods, indicating a slowdown in the company's ability to settle its debts.

Overall, Nazara Technologies has experienced a revision in its score, reflecting the mixed performance across various financial metrics.

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