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Gaming firm Nazara Technologieshas posted a 31% year-on-year rise in net profit for the first quarter of FY23-24 at Rs 20.9 crore.

The profit after tax in Q1 of FY22-23 was Rs 15.9 crore.

Revenue rose 14% to Rs 254.4 crore from Rs 223.1 crore in the previous corresponding quarter. The EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 10% to Rs 33.1 crore.

“Our revenue and EBITDA growth is expected to accelerate in coming quarters due to seasonality and our decision to defer key esports launches to benefit from upcoming opportunities,” said Nitish Mittersain, Founder, CEO and Joint MD of Nazara Technologies, in a statement.

He also said sports media platform Sportskeeda, in which Nazara has 67% stake, continues to deliver a strong performance with 52% growth YoY in revenues and 55% in EBITDA.

Earlier this month, the board of directors of the gaming firm approved the company’s move to raise Rs 750 crore, through an issue of equity shares and other equity-linked instruments. This marked the first instance of fundraising activities since the launch of the company’s IPO in 2021. However, it was unclear what the company would use the funds for; media reports had suggested that the funds would be used for Nazara’s continued acquisition spree.

The company has clarified that it shall continue building a pipeline of M&A opportunities across segments, with a focus on adding IPs and strong teams to its platform.

Referring to the GST (goods and service tax) council’s decision to impose a 28% GST on the full value of online gaming, horse racing, and casinos, Mittersain said, “The recent announcements related to skill-based real money gaming business will have minimal impact on our overall financial performance as its contribution is limited to 4.7% of our revenue and 0.5% of our EBITDA in Q1FY24.”