Nykaa profit drops 59% to Rs 28 cr in Q3, revenue up 36%

The company's consolidated gross merchandise value grew 26 per cent sequentially and 49 per cent on a YoY basis to Rs 2,044 crore in Q3 of FY22

E-commerce company Nykaa saw its profit in the December quarter (Q3) drop 59 per cent to Rs 28 crore compared to the year-ago period even as revenue rose 36 per cent to Rs 1,098 crore.

The company’s consolidated gross merchandise value (GMV) grew 26 per cent sequentially and 49 per cent on a YoY basis to Rs 2,044 crore in Q3 of FY22. The company said that GMV has grown 83 per cent year to date.

Its beauty and personal care GMV grew 29 per cent sequentially and 32 per cent YoY to Rs  1.533 crore in Q3 of FY22. The fashion vertical’s GMV rose 17 per cent sequentially and 137 per cent YoY to Rs 510 crore during the period.

“Annual Unique Transacting Customers in the BPC vertical grew 9 per cent QoQ and 44 per cent YoY to 7.9 million, and in the fashion vertical, grew 23 per cent QoQ and 278 per cent YoY to 1.6 million in Q3 FY22,” said the company.

Falguni Nayar, Executive Chairperson, MD, and CEO, said: “Our previous quarter was defined by a milestone moment in the company’s journey with a successful IPO and listing on the stock exchanges. We continue to be on a steady growth trajectory across both Beauty and Fashion businesses, with an overall revenue growth of 65 per cent for the nine month period year-on-year.”

“Growth in the beauty business accelerated in a relatively normalized Covid environment, with a strong revival in the cosmetics category. Our physical store network also experienced one of its strongest quarters ever and we continued opening new stores in line with our larger omnichannel vision,” she added.

Nykaa has accelerated store expansion this quarter, with 12 new physical retail stores across the country including stores in Tier 2/3 cities such as Jodhpur, Rajkot, Trivandrum. The company’s total operational physical store count was 96 as of December 31, 2021 in 45 cities.

The company continues to ensure access and timely delivery for customers across the length and breadth of the country. It expanded warehouse storage space by 1.35 lakh square feet during Q3 of FY22.