Online fashion and beauty retailer Nykaa Ltd on Wednesday reported a consolidated net profit of ₹28 crore for the December quarter. This is a fall of 59% from ₹69 crore a year ago, hit by a jump in expenses and subdued demand for personal care and fashion products.
On a sequential basis, the profit after tax more than doubled from ₹12 crore reported in the previous September quarter.
Revenue from operations rose 36% to ₹1,098 crore in the reporting quarter as compared to ₹808 crore in the corresponding quarter of last year.
On Wednesday, Nykaa shares fell 0.70% to close at ₹1,848.90 apiece on NSE. In the last one month, the scrip has fell nearly 8%.
“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% for the nine month period year-on-year,” Nykaa CEO and MD Falguni Nayar said.
The beauty company’s expenses soared by 47% to ₹1,067 crore during the December quarter when compared with ₹727 crore in the year-ago period.
The consolidated GMV (gross merchandise value) grew 26% sequentially and 49% year-on-year to ₹2,043 crore in the third quarter, supported by strong operational metrics.
In the beauty and personal care segment (BPC), the GMV rose 32% year-on-year to ₹1,533 crore, while the same from the fashion segment surged 137% year-on-year to ₹510 crore during the third quarter under review.
Growth in 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. Marketing continues to be an area of investment for Nykaa, to reacquire as well as recruit new consumers as a means to ensure stronger organic growth, she said.
The income from marketplace services soared 154% year-on-year in Q3FY22, primarily driven by fashion GMV growth. Meanwhile, advertisement revenue surged 53% year-on-year in the same period on recovery in brand spends on advertisement.
The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) was ₹69 crore in the reporting quarter, while the margins contracted year-on-year to 6.3%, again mainly due to higher marketing expenses.
The average monthly unique visitors in BPC vertical grew 39% year-on-year to 22 million, and in fashion vertical rose 120% year-on-year to 16.4 million in the third quarter.
Fashion, while still an early-stage business in the Nykaa ecosystem, now contributes to 26% of the consolidated GMV year to date. It has witnessed robust growth across revenue metrics, boosted by the acquisition of new customers in the year so far. The overall Fashion portfolio grew with the launch of new international brands as well as the expansion of Nykaa’s owned brands, Nykd and RSVP, through strategic collaborations, Falguni Nayar added.
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