NAZARA TECHNOLOGIES 2024-25 Annual Report Analysis

Tue, 9 Sep

NAZARA TECHNOLOGIES has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

NAZARA TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 42.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY25 as against 7.9% in FY24.
• Depreciation charges increased by 75.7% and finance costs increased by 39.1% YoY, respectively.
• Other income grew by 3.3% YoY.
• Net profit for the year declined by 30.1% YoY.
• Net profit margins during the year declined from 7.9% in FY24 to 3.9% in FY25.

NAZARA TECHNOLOGIES Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	11,383	16,239	42.7%
Other income	Rs m	886	915	3.3%
Total Revenues	Rs m	12,269	17,154	39.8%
Gross profit	Rs m	897	1,150	28.2%
Depreciation	Rs m	670	1,177	75.7%
Interest	Rs m	79	110	39.1%
Profit before tax	Rs m	1,034	779	-24.7%
Tax	Rs m	140	153	9.7%
Profit after tax	Rs m	895	625	-30.1%
Gross profit margin	%	7.9	7.1
Effective tax rate	%	13.5	19.7
Net profit margin	%	7.9	3.9

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NAZARA TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 9 billion as compared to Rs 4 billion in FY24, thereby witnessing an increase of 142.3%.
• Long-term debt stood at Rs 919 million as compared to Rs 0 million during FY24, a fall of 0.0%.
• Current assets fell 26% and stood at Rs 14 billion, while fixed assets rose 240% and stood at Rs 29 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 44 billion as against Rs 28 billion during FY24, thereby witnessing a growth of 60%.

NAZARA TECHNOLOGIES Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	19,969	28,628	43.4
Current Liabilities	Rs m	3,821	9,259	142.3
Long-term Debt	Rs m	0	919	0.0
Total Liabilities	Rs m	27,534	44,182	60.5
Current assets	Rs m	18,968	14,077	-25.8
Fixed Assets	Rs m	8,554	29,065	239.8
Total Assets	Rs m	27,534	44,182	60.5

NAZARA TECHNOLOGIES Cash Flow Statement Analysis

• NAZARA TECHNOLOGIES's cash flow from operating activities (CFO) during FY25 stood at Rs 655 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -11 billion, an improvement of 88.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs 8 billion on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -3 billion from the Rs 4 billion net cash flows seen during FY24.

NAZARA TECHNOLOGIES Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	908	655	-27.9%
Cash Flow from Investing Activities	Rs m	-6,030	-11,340	-
Cash Flow from Financing Activities	Rs m	9,463	8,049	-14.9%
Net Cash Flow	Rs m	4,249	-2,682	-

Current Valuations for NAZARA TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an decline from the EPS of Rs 11.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,097.9, stands at 89.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 41.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	148.7	185.3
TTM Earnings per share	Rs	11.7	7.1
Diluted earnings per share	Rs	9.7	6.8
Price to Cash Flow	x	39.7	41.7
TTM P/E ratio	x	67.9	89.8
Price / Book Value ratio	x	2.9	2.6
Market Cap	Rs m	57,259	75,131
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NAZARA TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY25, from 5.0x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 8.1x during FY25, from 14.1x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 2.2% during FY25, from 4.5% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 3.0% during FY25, from 5.6% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 1.7% during FY25, from 3.5% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	5.0	1.5
Debtors’ Days	Days	882	1,295
Interest coverage	x	14.1	8.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	1.7
Return on equity	%	4.5	2.2
Return on capital employed	%	5.6	3.0

To see how NAZARA TECHNOLOGIES has performed over the last 5 years, please visit here.

NAZARA TECHNOLOGIES Share Price Performance

Over the last one year, NAZARA TECHNOLOGIES share price has moved up from Rs 923.3 to Rs 1,097.9, registering a gain of Rs 174.6 or around 18.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 34,680.8 (up 2.7%). Over the last one year it has moved down from 42,583.7 to 34,680.8, a loss of 7,903 points (down 18.6%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

(To know more, check out historical annual results for NAZARA TECHNOLOGIES and quarterly results for NAZARA TECHNOLOGIES)