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  5. Nykaa’s net profit grows 44% QoQ to ₹7.8 crore; discounting rises in BPC category

Nykaa’s net profit grows 44% QoQ to ₹7.8 crore; discounting rises in BPC category

Nykaa’s net profit grows 44% QoQ to ₹7.8 crore; discounting rises in BPC category
Business2 min read
  • Nykaa’s revenue from operations grew 6% sequentially, and 22% YoY.
  • Its profit margin for the second quarter is at 0.5%, which went up by 10 basis points YoY.
  • It added 13 new stores launched in the quarter, and now has a total of 165 stores.
FSN E-commerce ventures, the operates beauty retailer Nykaa, on Monday reported a 44% sequential growth in its second quarter net profit to ₹7.8 crore from ₹5.4 crore in Q1. Its revenue from operations grew 6% sequentially to ₹1,507 crore from ₹1,421 crore in the quarter that ended in June.

Its revenues grew 22% year on year in spite of a delayed festival season in Q2, the company said. Its net profit grew 50% YoY. Its earnings before interest tax depreciation and amortization (EBITDA) grew 32% YoY to ₹80.6 crore in Q2 FY24.

“The quality of the business continues to witness improvements. EBITDA margin expanded to 5.4% for the quarter, a growth of 32% YoY on the back of both direct and indirect costs efficiencies. Fulfillment cost as a percent to revenue stood at 9.7% for the quarter, compared to 11.8% in Q2 FY23,” Nykaa said in its press release.

Its employee expense as a percent to revenue also came down to 9% for the quarter, compared to 9.9% in Q2 FY23, after witnessing improvements through the last few quarters.

Its profit margin for the quarter is at 0.5%, which went up by 10 basis points YoY.
Its gross merchandise value (GMV) saw a 25% year on year growth to ₹2,943 crore, the company said in its press release.

BPC: Home grown brands & discounting

The e-commerce player which also has a fashion business, said that its bread and butter business of beauty and personal care saw 23% You growth. Its net sales value growth saw a 19% YoY growth.

“Discounting has increased in this category due to proliferation of a number of home-grown brands as well as increasing number of international brands making India a priority market,” Nykaa said in its release.

It added 13 new stores launched in the quarter, and now has a total of 165 stores. The retail business now constitutes 8% of the overall BPC gross merchandise value (GMV).

The consolidated revenue from operations in its fashion business now stands at ₹130 crore, with a 28% YoY growth on a low base.

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