Nykaa’s Q4 Profit Plummets 71% YoY to Rs 2.4 Cr due to Soaring Expenses

• ByStartupStory     |    May 24, 2023

Nykaa, the popular beauty retailer, experienced a 71% decline in profit during the fourth quarter, reaching Rs 2.4 crore compared to Rs 8.5 crore in the previous year. However, its revenue saw a significant increase of 33%, reaching Rs 1,301 crore in the same period. For the fiscal year 2023, Nykaa recorded a 36% growth in revenue, amounting to Rs 5,143 crore, although its profit more than halved to Rs 19.2 crore from Rs 41 crore in the previous year.

During the fourth quarter, expenses for Nykaa surged to Rs 1,302 crore, indicating a 33% rise from Rs 978 crore in the corresponding quarter of the previous year. Furthermore, for FY23, Nykaa witnessed a 36% increase in expenses, reaching Rs 5,135 crore compared to the previous year.

According to a regulatory filing, under the leadership of Falguni Nayar, Nykaa allocated Rs 18.2 crore towards the establishment of retail stores for its beauty and fashion brands as of March 2023. Additionally, the company invested Rs 32.4 crore in expanding its warehouses.

In the previous quarter, Nykaa incurred its highest expense in the form of purchased traded goods, amounting to Rs 601 crore. This was followed by other expenses and employee benefit expenses. In the previous year, Nykaa made notable acquisitions, including an 18.5% stake in Earth Rhythm for Rs 41.6 crore in May, a 60% stake in Nudge Wellness for Rs 3.6 crore in June, and the complete acquisition of lluminar Media for Rs 29 crore in September. On Wednesday, Nykaa’s shares closed at Rs 125 apiece, marking a 2.6% decrease.

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