Nazara Tech’s Focus On Growth Right Now, Not Margins, Says Founder Nitish Mittersain

Nazara Technologies Ltd.’s priority remains reinvesting profits for growth, even as it tries to maintain minimum margins, according to its founder and Managing Director Nitish Mittersain.

“Our priority remains on growth while remaining profitable with positive cash flow. We are not going to optimise our margins today, as many of the areas we are operating in are emerging large businesses at a nascent stage,” Mittersain told BQ Prime’s Niraj Shah.

According to him, the company has multiple engines of growth, diversification in geographies, products and revenue models.

While they had earlier guided for 50% growth on revenues for FY23, based on second-quarter numbers, that has been revised to 70-75%. “We have significantly upped our growth estimates. We are seeing growth momentum,” he said.

Margin guidance was earlier at 12-13%, but now they are expecting to do “at least 10% in the entire year”, Mittersain said.

Mittersain said the company is confident of going into FY24 on a strong footing, and doing well next year as well.