FSN E-Commerce Ventures, the parent company of online beauty e-commerce platform Nykaa on Friday reported a 33.4 per cent rise in consolidated net profit at Rs 4.55 crore in the first quarter ended 30 June, 2022. The company had posted a net profit of Rs 3.41 crore in the year-ago period.
Sequentially, the beauty e-commerce platform profit declined 47.6 per cent from Rs 8.56 crore in the previous quarter (Q4FY22).
The company's revenue from operations rose 40.5 per cent to Rs 1148.421 crore in the quarter under review as against Rs 816.991 crore in the same quarter last fiscal.
During the quarter, Nykaa's gross merchandise volume (GMV) grew 47 per cent YoY to Rs 2155.8 crore.
Moreover, its EBITDA grew 71 per cent to Rs 46.1 crore in Q1FY23. EBITDA margin as percentage of revenue from operations improved to 4 per cent as compared with 3.3 per cent in same quarter last fiscal, led by improvement in gross margin and efficiency in fulfilment expense, Nykaa said in a regulatory filing.
Commenting on the results, Falguni Nayar, Executive Chairperson, MD, and CEO, said, "The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain. 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."
"We continue to invest in building a unique customer proposition in fashion, with developments in platform experience and assortment depth. We also strengthened our purpose led owned brands portfolio, through the launch of Twig & Twine, Gloot, Azai and the acquisition of Kica. The sequential growth of Fashion over Q3 and Q4 of last year comes as a result of these building blocks along with the industry witnessing revival as factors such as mobility and travel improve," Nayar added,
"We remain focused on investing in growth engines of the future, particularly Superstore by Nykaa, Nykaa Man and international operations. In each of these, our efforts are towards building the business model in a sustainable manner. We are witnessing promising revenue growth in these ventures, giving us confidence in our ambitions," she added.
Shares of Nykaa on Friday closed 1.69 per cent lower at Rs 1,420 apiece on BSE.
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