Results for Nykaa Q2: Profit up 333% year over year to Rs 5.2 crore; revenue up 39%

• ByStartupStory     |    November 1, 2022

In the second quarter of the current fiscal year (Q2 FY23), FSN E-Commerce Ventures Ltd, which operates the online fashion retailer Nykaa, declared a consolidated net profit of 5.2 crore, an increase of more than 330% from the quarter before. In the preceding quarter, from June 2022 to June 2023, the company had posted a profit of 5 crore.

The company’s operating revenue increased by over 39% to 1,230 crore from $885 crore in the same quarter of the previous fiscal year, while it increased by 7% from 1,148.4 crore quarter-over-quarter (QoQ).

The company reported good GMV growth throughout the quarter, with improved gross margin, and efficient fulfilment and marketing costs that improved EBITDA margin year over year (YoY).As of September 30, 2022, Nykaa will have 124 physical locations, including two new fashion stores, spread throughout 53 cities, with a total square footage of 1.2 lacs.

“Our presence in the beauty industry, both online and offline, has resulted in robust growth and rising profits. As we prepare for a strong H2 FY23, consumer demand for premium personal care, wellness, and beauty products is exhibiting signals of growth. New season products contributed for 24% of Nykaa Fashion GMV; foreign brands are at 13% of the western wear category GMV in Q2 FY23, demonstrating our focus on curation and discovery in fashion. According to Falguni Nayar, Executive Chairperson, MD, and CEO, “Digital marketing expenditures for the fashion industry are somewhat higher than during the covid era, resulting in marketing costs maintaining at Q2 FY22 levels.

In the afternoon trade on Tuesday, Nykaa shares increased by more than 4% to 1,208 per share on the BSE. Nykaa shares went public in November of last year, and since then, the stock has fallen more than 48%.

The company would issue a bonus of 5 shares for every share held as of the record date, according to a statement made earlier this month by Nykaa, whose board had approved the issuance of bonus equity shares in the ratio of 1:5. In order to determine who is qualified for bonus equity shares, the business has changed the record date to November 11, 2022.

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