Nykaa’s Q1 net profit at ₹5 crore, Falguni Nayar says demand recovering in beauty, personal care

• FSN E-Commerce Ventures that runs Nykaa clocks net profit of ₹5 crore in June quarter, while revenues jump 41% to ₹1,148 crore as demand improves
• Founder and CEO Falguni Nayar says the company has booked good sales in June quarter despite the challenging environment.
• It has accelerated offline expansion with 8 physical stores across cities like Pune, Coimbatore, Delhi, Ranchi with stores count rising to 113 stores across 52 cities.

FSN E-Commerce Ventures, the parent company of online retailer Nykaa, on Friday reported a net profit of ₹5 crore in April-June quarter, while revenues grew 41% at ₹1,148 crore backed by signs of demand recovery in all verticals. Sequentially, Nykaa’s net profit fell 34% as it had reported a profit of ₹7.6 crore in the March quarter.

Founder and CEO Falguni Nayar said that the company booked good sales in June quarter despite the challenging environment. “Our business continues to grow across the verticals, despite an adverse and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-first experiences. The beauty vertical, online and offline, is witnessing growth momentum, while building efficiencies across the value chain,” said Nayar.

Its gross merchandise value increased 47% year-on-year to ₹2,155.8 crore in the first quarter of FY23.

Particulars	Q1 FY23	Q1 FY22	% change
Revenue from operations	₹1,148 crore	₹817 crore	41%
Profit	₹5 crore	₹3.5 crore	42%
EBITDA	4%	3.3%	71 basis points

Nykaa, which has been opening stores to let consumers recognize their brand, has accelerated offline expansion with 8 physical stores across cities like Pune, Coimbatore, Delhi, Ranchi, Ahmedabad and Kolkata. With this, total physical stores count stands at 113 stores across 52 cities. The company has plans to triple the store count to 300 across 100 cities.

Further, the company is gearing up for the upcoming festive season and resuming offline shopping behaviour. “As a result of the significant discipline that we ensured in our retail store business during the COVID affected periods, we are now witnessing the positive effect of scale on our unit economics, especially with the return of offline shopping behaviour. The consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year,” she said.

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