The shares of this leading mobile gaming company fell 8.5% after two of its subsidiaries received a significant GST liability notice amounting to Rs 1,120 crores.
At 11:45 a.m., Nazara Technologies Ltd. shares were trading at ₹901 per share, down 2.36% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹6,894 crore.
What Happened: According to a recent exchange filing by Nazara Technologies, two of its subsidiaries have received GST notices totaling Rs 1,120 crore. Openplay Technologies Pvt Ltd received a Show Cause Notice on July 16, 2024, from the Director General of GST Intelligence, Kolkata, proposing a liability of Rs 845.72 crore for the period from 2017-18 to 2022-23.
Additionally, Halaplay Technologies Pvt Ltd received an intimation of a proposed tax liability under the CGST Act, 2017, amounting to Rs 274.21 crore from the same authority for the same period.
About the company: Nazara Technologies is the largest India-based diversified gaming and sports media platform, with a presence in India and growing markets such as Africa and North America. It offers interactive gaming, eSports, and gamified early learning ecosystems.
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Nazara Technologies Ltd generates the majority of its revenue from three main segments: 36% from the gaming business, 55% from esports, and 9% from the adtech business. Geographically, the company earns 45% of its revenue from India, 39% from North America, and 16% from other markets worldwide.
The company’s shares have increased by 8% year-to-date and 38% over the past 12 months. Kamath Associates holds a 1.97% stake in Nazara Technologies Ltd as of the June 2024 quarter.
Financials: The company’s revenue increased by 4 percent year on year, from ₹1,091 crore in FY22-23 to ₹1,138 crore in FY23-24. During the same time, net profit has increased by 23 percent, from ₹61 crore to ₹75 crore.
Written by Omkar Chitnis
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