Nykaa Q2 Results: Revenue rises 22% while profit soars 50% YoY to Rs 7.8 crore

7 Nov 2023 , 11:22 AM

The beauty and fashion store Nykaa, owned by FSN E-commerce, reported a 50% increase in its consolidated net profit for the quarter that ended in September, coming in at Rs 7.8 crore. In the previous year, the same was valued at Rs 5.1 crore.

Compared to the same period last year, when revenue from operations was Rs 1,231 crore, it rose 22% to Rs 1,507 crore in the July-September quarter.

The holiday season started in October this year instead of September as it did last year, but despite this, income increased quite a bit.

In the reporting quarter, the company’s EBITDA increased by 32% year over year to Rs 80.6 crore. During the same period, EBITDA Margin increased by 38 basis points to 5.4%.

During the reporting year, the gross merchandise value (GMV) increased by 25% year over year to Rs 2,943 crore.

The BPC segment saw a 23% YoY increase in GMV. ‘Discounting has increased in this category due to the proliferation of a number of home-grown brands as well as an increasing number of international brands making India a priority market,’ the business stated.

The physical retail industry grew further throughout the quarter, opening 13 new locations, bringing the total to 165 by September 2023. Currently, 8% of BPC’s total GMV comes from the retail sector.

With a 28% YoY increase, the fashion industry’s consolidated revenue from operations came to Rs 130 crore.

This came after the second quarter’s impressive 32% YoY growth in NSV (net sales value), which was driven by a 30% YoY increase in annual unique transacting customers (AUTC) to 2.8 million as of September 2023.

According to Nykaa, its fashion industry is growing and becoming more profitable.

In the reporting quarter, Nykaa Fashion’s contribution margin to NSV as a percentage was 4.7%, up from 2.3% in the corresponding period last year. Improvements in pre-delivery leakages and marketing costs corroborated this.

Superstore by Nykaa, one of the company’s new ventures, saw NSV of Rs 98.6 crore for the quarter, rising at a rate of 105% YoY.

By the end of the second quarter, the superstore company had grown to serve 1.3 lakh transacting retailers in 770 cities.

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