Nykaa Reports Net Profit of Rs 1.2 cr in September Quarter

Nykaa, which was listed on the BSE, had logged a net profit of Rs 27 crore in the July-September 2020 quarter, FSN said in a regulatory filing
Nykaa Reports Net Profit of Rs 1.2 Cr in September Quarter

FSN E-Commerce Ventures Ltd, which administers Nykaa, said its net profit stood at Rs 1.2 crore for the quarter ended in September 2021. The company, which was listed on the BSE, had logged a net profit of Rs 27 crore in the July-September 2020 quarter, FSN said in a regulatory filing.

Its revenue from operations, on the other hand, grew 47 percent to Rs 885.3 crore in the quarter under review from Rs 603.8 crore in the September 2020 quarter.

"We have maintained growth momentum in our beauty business, accelerated our fashion business, and focused on building the brand Nykaa with strong marketing campaigns both digitally and mass media," Falguni Nayar, CEO, MD, and Executive Chairperson at Nykaa said.

She added that increased marketing spends has led to an acceleration of customer acquisition, which is also evident in the unique visitor and transacting customer metrics.  

"The company continues to invest in the expansion of retail stores and fulfillment capacity ahead of the festive season," Nayar said, adding that the acquisition of the skincare brand, Dot & Key marks a significant step towards Nykaa's owned brands strategy.

Nayar highlighted that the company has launched the Nykaa eB2B app - Nykaa Superstore.

"The business will be an area of focus for the quarters to come. On the fashion side, we have launched a brand, Gajra Gang, in the large and promising Indian wear space," Nayar added.

As per the company’s filing, Nykaa's Beauty and Personal Care GMV  grew by 38 percent year-on-year to reach Rs 1,185.9 crore, while Fashion GMV grew by 215 percent y-o-y to reach Rs 437 crore.

Fashion GMV's contribution to consolidated GMV increased to 27 percent compared to 14 percent in the second quarter of FY21.  

The monthly average unique visitors increased to 21 million with y-o-y growth of 62 percent in the beauty and personal care vertical and to 16 million with y-o-y growth of 328 percent in the fashion vertical.

According to the reports, annual unique transacting customers reached 7.2 million with y-o-y growth of 40 percent in the beauty and personal care vertical, and 1.3 million with 417 percent y-o-y growth in the fashion vertical.

“The company has accelerated store expansion this quarter, with eight new physical retail stores across the country including stores in Gwalior, Kochi, Mysore, and Ranchi. Its total operational physical stores were 84 as of September 30, 2021,” the company said.

Nykaa has also expanded warehouse storage space by 0.37 lakh square feet during the second quarter of FY22, which resulted in a total warehouse space of 6.65 lakh square feet as of September 30, 2021.

FSN E-Commerce Ventures had made a stellar debut on Dalal Street with its shares closing with a huge premium of over 96 percent against the issue price of Rs 1,125 on November 10. The stock debuted at Rs 2,001 apiece, reflecting a jump of 77.86 percent on the BSE. Then, the scrip zoomed 99.83 percent to Rs 2,248.10 during the day before closing at Rs 2,206.70. The closing price is 96.15 percent higher than the issue price.

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