FSN E-Commerce (Nykaa) Q3 net down -59.5% yoy at Rs27.93cr on spike in fulfilment and marketing costs

9 Feb 2022 , 11:23 PM

FSN E-Commerce (Nykaa) reported 35.94% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs1,098.36cr.

On a sequential basis, the revenues were up by 24.07%. During the December 2021 quarter, consolidated GMV (gross merchandize value) grew by 26% sequentially and 49% yoy at Rs2,044cr. The beauty and personal care vertical saw the GMV grow by 32% yoy at Rs1,533cr.

Fashion GMV grew by 137% yoy to Rs510cr in the quarter and now accounts for 25% of the GMV in the quarter. The unique transacting customers (UTC) for the quarter were up 44% yoy at 79 lakh. Order volumes grew to 7.6 million in the quarter.

For the Dec-21 quarter, the operating profits were down on a yoy basis by -50.48% at Rs43.86cr. During the quarter, the gross profit of Nykaa grew by 51% yoy to Rs509cr while the gross margins came in at a healthy 46% on sales revenues.

This was up 359 bps yoy due to bigger share of high value products. EBITDA came in for the quarter at Rs69cr while the EBITDA margins improved by 300 bps from 3.3% last year to 6.3% this year.

However, due to the fall in operating profits, the operating margins tapered from 10.96% in the Dec-20 quarter to 3.99% in the Dec-21 quarter. However, the Operating margins were sharply higher on a sequentially basis.

Net Profit after tax (PAT) for the Dec-21 quarter was down -59.5% yoy at Rs27.93cr on the back of higher marketing and fulfilment expenses in the quarter with the higher costs likely to be accretive to sales in the medium to long run.    

PAT margins tapered from 8.54% in the Dec-20 quarter to 2.54% in the Dec-21 quarter. The PAT margins were sharply higher on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Nykaa
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 1,098.36	₹ 807.97	35.94%	₹ 885.26	24.07%
Operating Profit (Rs cr)	₹ 43.86	₹ 88.57	-50.48%	₹ 7.52	483.24%
Net Profit (Rs cr)	₹ 27.93	₹ 68.97	-59.50%	₹ 1.22	2189.34%
Diluted EPS (Rs)	₹ 0.60	₹ 1.50		₹ 0.03
Operating Margins	3.99%	10.96%		0.85%
Net Margins	2.54%	8.54%		0.14%