scorecardresearch
Nykaa Q3 results: Net profit declines 58% to Rs 29 cr, revenue up 36%

Nykaa Q3 results: Net profit declines 58% to Rs 29 cr, revenue up 36%

Revenue from operations grew 36 per cent to Rs 1,098.4 crore from Rs 808 crore in October-December quarter of 2021.

Nykaa's EBITDA decreased 36 per cent to Rs 69 crore. Nykaa's EBITDA decreased 36 per cent to Rs 69 crore.

FSN E-Commerce Ventures, the parent company of online beauty e-commerce platform Nykaa, on Wednesday reported a 58 per cent year-on-year (YoY) decline in its consolidated net profit for October-December at Rs 29 crore. Its net profit stood at Rs 1.2 crore in the preceding September quarter.
 
However, revenue from operations grew 36 per cent YoY and 24 per cent quarter-on-quarter (QoQ) to Rs 1,098.4 crore from Rs 808 crore in October-December quarter of 2021.
 
Driven by a sharp 155 per cent YoY increase in marketing and advertisement expenses and 89 per cent rise in other expenses, Nykaa's operating expenses grew 91 per cent to Rs 439.8 crore.
 
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 36 per cent to Rs 69 crore, while EBITDA margin contracted 697 basis points to 6.3 per cent.
 
The company said its consolidated merchandise value (GMV) grew 26 per cent QoQ and 49 per cent YoY to Rs 2,043.5 crore, with beauty and personal care (BPC) rising 29 per cent QoQ and 32 per cent YoY to Rs 1,533.3 crore. Meanwhile, fashion GMV grew 17 per cent QoQ and 137 per cent YoY to Rs 510.2 crore.
 
"Annual monthly unique visitors in BPC vertical grew 4 per cent QoQ and 39 per cent YoY to 2.2 crore, and in fashion vertical grew 1 per cent QoQ and 120 per cent YoY to 1.6 crore in Q3 FY22," the company said in a release.
 
Also Read: LIC likely to file DRHP with SEBI for its mega IPO tomorrow

It said the annual unique transacting customers reached 79 lakh with a growth of 9 per cent QoQ and 44 per cent YoY, while that for fashion reached 16 lakh with a growth of 23 per cent QoQ and 278 per cent YoY.
 
With the return of customers into physical retail, Nykaa said it accelerated store expansion during the December quarter by opening 12 new physical retail stores across the country including cities like Jodhpur, Rajkot, Trivandrum. Its total operational physical stores stood at 96 as of December 31, 2021 across 45 cities.
 
The company also expanded its warehouse storage space by 1.35 lakh square feet during the quarter.
 
Commenting on the results, Nykaa MD and CEO and executive chairperson Falguni Nayar said, "Growth in beauty business accelerated in a relatively normalised Covid environment, with a strong revival in the cosmetics category. Our physical store network also experienced one of its strongest quarters ever and we continued opening new stores in line with our larger omnichannel vision."
 
Marketing continues to be an area of investment for the company to reacquire as well as recruit new consumers to ensure stronger organic growth, she added.
 
Shares of the company ended 0.70 per cent lower at Rs 1,849.45 on the BSE on Wednesday.

Also Read: Paras Defence back in the black; firm posts net profit at Rs 8 cr in Q3