Nykaa Q3 results: Nykaa Q3 Results: Profit plunges 58% to Rs 29 cr; revenue up 36%

FSN E-Commerce Ventures, which controls Nykaa, on Wednesday reported its December quarter consolidated net profit at Rs 29.01 crore, down 57.87 per cent compared to Rs 68.88 crore reported in the same quarter last year.

Revenue from operations came in at Rs 1,098.36 crore, up 35.94 per cent against Rs 807.96 crore in the year ago quarter.

Sequentially, both numbers were better. Profit climbed 24 percent compared to the September 2021 quarter and revenue rose 24 per cent.

The company said its Ebitda stood at Rs 69 crore at a margin of 6.3 per cent (vs 3.3 per cent in Q2FY22).

The sequential outperformance was driven by higher gross profit margin. However, it was down 697 bps year-on-year. Nykaa’s consolidated GMV grew 26 per cent sequentially and 49 per cent year-on-year to Rs 2,043.5 crore in the quarter.

Beauty and personal care (BPC) GMV grew 29 per cent QoQ and 32 per cent YoY, while fashion GMV grew 17 per cent QoQ and 137 per cent YoY, the firm said.

“We continue to be on a steady growth trajectory across both beauty and fashion businesses. Growth in the beauty business accelerated in a relatively normalised Covid environment, with a strong revival in the cosmetics category,” said Falguni Nayar, MD and CEO of Nykaa’s parent company.

The brand’s physical store network also experienced one of its strongest quarters ever and the company 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 added.

More to come…