Nykaa Q3FY24 results: Net profit increases 106% to Rs 17.5 crore

FSN E-Commerce Ventures, the parent company of beauty and fashion brand Nykaa, on Tuesday reported a 106 per cent year-on-year (Y-o-Y) increase in its net profit to Rs 17.5 crore for the third quarter ended December 31, compared to Rs 8.5 crore in the year-ago period.

The company had posted a profit of Rs 7.8 crore a quarter ago, according to regulatory filings.

The company’s consolidated revenue from operations grew 22 per cent Y-o-Y to Rs 1,789 crore, up from Rs 1,462 crore a year ago and Rs 1,507 crore in Q2 FY24.

“We continue to drive improvement in profitability. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin expanded to 5.5 per cent for the quarter, a growth of 26 per cent Y-o-Y driven by direct and indirect cost efficiencies,” Nykaa said in a statement.

 

Nykaa’s flagship “Pink Friday Sale” in November 2023 pulled in record numbers and bolstered sales during the quarter. Sales in its beauty category jumped 10-fold over the last 10 years during the event, while fashion gross merchandise value (GMV) increased two-fold over the last two years, the company said.

Footfall in its retail stores during the event increased 50 per cent compared to regular days.

The firm’s total expenses for the quarter came in at Rs 1,770 crore, up from Rs 1,456 crore a year ago and Rs 1,228 crore in Q3 FY24.

Fulfilment costs as a percentage of the company’s revenue stood at 9.6 per cent for the quarter, compared to 10.7 per cent in Q3 FY23. Similarly, employee expenses stood at 8.3 per cent for the quarter, down from 8.7 per cent in Q3 FY23.

Nykaa's GMV grew 29 per cent Y-o-Y to Rs 3,619 crore in the December quarter, with all divisions contributing to the company's growth.

Beauty and Personal Care (BPC)

The consolidated BPC GMV witnessed a growth of 25 per cent Y-o-Y in Q3, while net sales value (NSV) grew 20 per cent Y-o-Y “due to higher discounting by brands in mass and masstige segment.”

The company’s physical retail footprint continued to expand, with 39 new stores launched over the last four quarters, totalling 174 stores as of December 31, 2023. The retail business now contributes to over 9 per cent of the overall BPC GMV.

Fashion

This fashion GMV witnessed strong growth of 40 per cent Y-o-Y led by strong growth across all metrics. The company’s annual unique transacting customer (AUTC) grew at 23 per cent Y-o-Y to 2.9 million, while order growth stood at 19 per cent Y-o-Y. Average order value (AOV), meanwhile, rose 18 per cent Y-o-Y, as of December 31, 2023.