Nykaa Q2 results: Net profit rises 50% to Rs 7.8 cr

FSN E-Commerce Ventures Ltd, the parent firm of beauty retailer Nykaa, on Monday reported 50% jump in consolidated net profit at Rs 7.8 crore for the quarter ended September 30, 2023. It reported consolidated net profit of Rs 5.2 crore in the year-ago period.

The firm's revenue rose 22% to Rs 1,507 crore in Q2FY24 as against Rs 1,231 crore in Q2FY23. Revenue growth was also muted due to a delay in the festive season, which started in October this year in India as opposed to September a year ago, pushing sales and traffic to the current quarter for a number of retailers.

On Monday, the firm's scrip on BSE closed 5% higher at Rs 147.45.

"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. Fulfilment cost as a % to revenue stood at 9.7% for the quarter, compared to 11.8% in Q2 FY23. Similarly, employee expense as a % to revenue stood at 9.0% for the quarter, compared to 9.9% in Q2FY23, witnessing improvements through the last few quarters," said Nykaa in a post-earnings statement.

"Shift of around 20 days in the festive calendar has resulted in some growth being impacted for the quarter," the company, which sells makeup, personal care items, as well as clothes and other accessories through its app and brick-and-mortar stores, said.

The BPC business's gross merchandise value (GMV)- the monetary value of all its orders - grew 23%, amid rising competition in the segment. It had risen 24% in previous quarter and 39% in the year-ago quarter.

"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.

The company's overall gross merchandise value (GMV) rose 25% to Rs 2,944 crore, aided by company's flagship sale event in July.