Nykaa posts 344 pc jump in net profit
Nov 01, 2022
Mumbai (Maharashtra) [India], November 1 : FSN E-Commerce Ventures, which runs the online fashion retailer Nykaa, on Tuesday posted a 344 per cent growth to Rs 52 million in its net profit for the quarter ended September, against Rs 12 million in the corresponding period the previous period.
The company also announced that its revenue from operations grew 39 per cent to Rs 12,308 million, from Rs 8,853 million in the year-ago period. Earnings before interest, taxes, depreciation and amortisation grew 112 per cent to Rs 611 million from Rs 288 million during the corresponding quarter the previous year. Ebitda margin improved to 5 per cent, against 3.3 per cent in the year-ago period.
The company also said its gross merchandise value (GMV) also grew 45 per cent to Rs 23,457 million during the reviewed quarter. Gross margin rose 45.3 per cent in September quarter 2023, against 42.7 per cent in the year-ago period.
Falguni Nayar, Executive Chairperson, Managing Director, and Chief Executive Officer, said, "Our online and offline presence in Beauty has delivered strong growth with improving margins. There has been structural improvement in fulfilment costs as we move to regional warehouses. Post-Covid, our accelerated investments in new store rollouts as well as store upgradation has resulted in improved footfalls and higher same store sales."
"Consumer demand for premium beauty, personal care and wellness is showing signs of buoyancy as we gear up for a promising H2 FY23 (the second half of 2022-23). We are committed to building a unique customer proposition in Fashion; aided by investments in a differentiated product, collaborations with global brands and expansion in the breadth and depth of our owned brand portfolio," said the executive chairperson.
She added, "Our merchandise partnership with 'Revolve' provides us access to a successful ecosystem that has proven capabilities. Our focus on curation and discovery in Fashion is evident, as new season merchandise accounted for 24 per cent of Nykaa Fashion GMV; international brands are at 13 per cent of western wear category GMV in Q2 FY23 (September quarter)."
She also said that the repeat buyers in fashion now contributed 66 per cent of Q2 FY23 GMV, giving them confidence in product proposition. Digital marketing costs for the fashion business are slightly higher than during Covid period, resulting in marketing costs sustaining at Q2 FY22 levels, she said.
