Online beauty and fashion e-commerce major Nykaa on Friday reported a 27 per cent year-on-year decline in consolidated net profit at Rs 3.3 crore in the first quarter of FY24. FSN E-Commerce Ventures, the parent company of Nykaa, had posted a net profit of Rs 4.55 crore in the year-ago period.
Nykaa’s revenue from the operations was Rs 1,421.8 crore for the first quarter, as compared to Rs 1,148.4 crore for the corresponding period a year ago which was a growth of 24 per cent.
Nykaa’s stock ended at Rs 146.25, up Rs 0.5 or 0.34 per cent on the BSE ahead of the earnings report.
The company’s total expenses went up 22 per cent to Rs 1,418.8 crore during the June quarter, compared to Rs 1,148 crore in the last year period.
Nykaa’s gross merchandise volume (GMV) grew 24 per cent YoY to Rs 2,667.8 crore.
In FY23, Nykaa’s revenue from operations stood at Rs 5,143.8 crore, demonstrating a strong growth of 36 per cent YoY, and the company achieved EBITDA at Rs 256 crore, demonstrating a 57 per cent growth YoY.
“Over the last two financial years, and further to the IPO, our revenue from operations grew from Rs 2,440 crore in FY21 to Rs 5,143 crore in FY23 and EBITDA expanded from Rs 156 crore to Rs 256 crore in the same period,” the company said in its earnings report.
Falguni Nayar, Executive Chairperson, MD, and CEO, Nykaa said that with steady improvements of over 40 per cent and 60 per cent 2-year growth in beauty and fashion platform conversions, “our investments towards building the right technology stack as well as customer-first shopping experiences are paying off”.
“This strong step-function growth also comes on the back of improvements across personalization capabilities, breadth and depth of product portfolio, UI UX enhancements, marketing optimisations and quality of in-bound visit traffic,” she mentioned.
Last week, reports surfaced that Nayar will also lead the marketing department of the company after the exit of six executives, including the marketing head.
Since April, the company has witnessed a series of resignations which include chief marketing officer Shalini Raghavan, forcing Nayar to spearhead the key department.
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