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Nykaa parent FSN E-Commerce Ventures on Monday reported its slowest quarterly revenue growth since its debut on the bourses over stiff competition in its key beauty and personal care (BPC) segment. The consolidated BPC gross merchandise value (GMV) grew at 23 per cent year-on-year (Y-o-Y) in the September quarter (Q2), but the company flagged increasing discounting in the space. This was “due to proliferation of a number of home-grown brands, as well as increasing number of international brands making India a priority market,” the parent of the beauty and fashion brand said.
The firm reported a 50 per cent Y-o-Y increase in net profit at Rs 7.8 crore for Q2, compared to Rs 5.2 crore in the year-ago period. The company had posted a profit of Rs 5.4 crore in the last quarter.
The company’s consolidated revenue from operations, meanwhile, grew 22 per cent to Rs 1,507 crore, up from Rs 1,230.8 crore a year ago, and Rs 1,421.8 crore in Q1 FY24.
A delay of around 20 days in the onset of the festival season, which is a big driver for consumption in the beauty category,
resulted in some growth being impacted for the quarter, the company said. The firm’s total expenses for the quarter came in at Rs 1,502 crore, a 22 per cent increase from Rs 1,228 crore in Q2 FY23.
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Its total income for Q2 also rose 22 per cent to Rs 1,515.6 crore versus Rs 1,237.7 crore last year.
Nykaa claimed that the quality of its business “continues to witness improvements.” The margin of earnings before interest, tax, depreciation and amortisation (Ebitda) expanded by 5.4 per cent to Rs 80.6 crore for the quarter, a growth of 32 per cent Y-o-Y on the back of both direct and indirect cost efficiencies.
The consolidated gross merchandise value (GOV) of the business grew 25 per cent YoY to Rs 2,943.5 crore in the September quarter. This was also a 10.3 per cent increase compared to Rs 2,667.8 crore reported in the previous quarter.
