Nykaa slumps 4.5% after Q3 PAT declines 58% yoy at Rs29cr on spike in fulfilment and marketing costs

10 Feb 2022 , 09:32 AM

FSN E-Commerce Ventures Limited (Nykaa), on Wednesday, announced its financial results for the quarter and nine months ended December 31, 2021. Consolidated revenue from operations grew 24% sequentially (qoq) and 36% yoy to Rs1,098.4cr in Q3FY22 led by growth in transacting customers and advertisement revenue; Revenue from Operation grew 65% year to date FY22.

Profit after Tax was Rs29cr in Q3FY22 from Rs1.2crin Q2FY22 a whopping increase of 2380% qoq. But PAT fell 58% yoy from Rs68.9cr in Q3FY21.

Profit after Tax was Rs33.7cr year to date FY22. Gross Profit grew 51% yoy to Rs508.8cr in Q3FY22 at a margin of 46.3%, an improvement of 359 bps sequentially primarily led by an increase in the share of high margin products and higher marketing support revenue.

Gross Profit grew 89% year to date FY22.

EBITDA was Rs69cr in Q3FY22 at a margin of 6.3% (vs 3.3% in Q2 FY22), sequential improvement was driven by higher Gross Profit Margin; EBITDA grew 11% year to date FY22. Profit before Tax was Rs37cr in Q3FY22, a sequential increase driven by higher EBITDA; Profit before Tax was Rs41.5cr year to date FY22, lower by 9%.

At around 9.36 am, FSN E-Commerce Ventures Ltd was trading at Rs1,767.80 per share down by Rs82.05 or 4.44% from its previous closing of Rs1,849.85 per share on the BSE.

Operational Highlights for the Quarter:

• Consolidated GMV grew 26% sequentially and 49% yoy to Rs2,043.5cr in Q3FY22; and grew 83% year to date FY22
• Beauty and Personal Care (BPC) GMV grew 29% qoq and 32% yoy to Rs1,533.3cr in Q3FY22; and grew 58% year to date FY22
• Fashion GMV grew 17% qoq and 137% yoy to Rs510.2cr in Q3FY22; and grew 236% year to date FY22
• Fashion GMV contribution 25% to consolidated GMV in Q3FY22
• Annual Unique Transacting Customers in BPC vertical grew 9% qoq and 44% yoy to 7.9 million, and in Fashion vertical grew 23% qoq and 278% yoy to 1.6 million in Q3FY22
• Order volume in BPC vertical grew 25% qoq and 31% yoy to 7.6 million with sustained AOV, and in Fashion vertical grew 5% qoq and 90% yoy to 1.4 million with an uptick in AOV in Q3FY22

Falguni Nayar, Executive Chairperson, MD, and CEO, said: “Our previous quarter was defined by a milestone moment in the company’s journey with a successful IPO and listing on the stock exchanges. We continue to be on a steady growth trajectory across both Beauty and Fashion businesses, with an overall revenue growth of 65% for the nine month period year-on-year.

Growth in Beauty business accelerated in a relatively normalized 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 Nykaa, to reacquire as well as recruit new consumers as a means to ensure stronger organic growth.”

“Fashion, while still an early-stage business in the Nykaa ecosystem, now contributes to 26% of the consolidated GMV year to date. It has witnessed robust growth across revenue metrics, boosted by the acquisition of new customers in the year so far. The overall Fashion portfolio grew with the launch of new international brands as well as the expansion of Nykaa’s owned brands, Nykd and RSVP, through strategic collaborations,” Falguni Nayar added.