Nykaa's profit in March quarter up by more than 4 times

23 May 2024 , 12:22 PM

Better client acquisition efforts and higher platform conversions helped FSN E-Commerce Ventures, which runs the beauty and personal care (BPC) brand Nykaa, record a net profit of ₹9 Crore for the quarter ending March 31, 2024, up more than 4X from ₹2 Crore in the same time the previous year.

The business run by Falguni Nayar recorded revenue of ₹1,668 Crore for the quarter, a 28% increase from ₹1,302 Crore from the same period last year.

In Q3FY24, the company reported sales of ₹1,789 Crore and profit of ₹17 Crore sequentially.

In an April report, the business stated that its BPC division was expanding significantly faster than the industry average. Analysts said that the company was seeing more competition from companies like Walmart-owned Myntra and Tira from Reliance Retail.

According to a Bank of America (BofA) report dated May 21, “…Myntra recently started selling BPC products in a meaningful way and the same is visible in survey results, where 19% of users indicated preference from buying on Myntra,” adding that new entrants are eating into Nykaa’s share.

Due to the decline in customers using sites like Flipkart and Amazon, recent entrants like Myntra have also seen a growth in their market share in BPC. They would want to test more recent businesses, which provide better deals and can be substituted for Nykaa.

Although Nykaa is still the most popular platform, 37% of respondents said they like Reliance Industry Limited’s Tira and had begun to purchase more on it.

During the full fiscal year of 2024, net profit increased by 90% to ₹40 Crore, while income from operations increased by 24% (YoY) to ₹6,386 Crore.

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