FSN E-Commerce Ventures Ltd., the parent company of leading omnichannel beauty and fashion retailer Nykaa has marked a significant growth in net profit for the quarter ending September 2024. The company’s Profit After Tax (PAT) increased by 66% year-on-year (YoY) to Rs 13 crore, up from Rs 7.8 crore in the same quarter last year.
Revenue and EBITDA growth
Nykaa’s revenue from operations increased by 24% YoY, reaching Rs 1,875 crore in the September quarter. The company also reported a notable 29% growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), totaling Rs 104 crore. EBITDA margins saw an improvement of 18 basis points, rising to 5.5%.
GMV and segment performance
The Gross Merchandise Value (GMV) for the quarter climbed 24% YoY to Rs 3,652 crore, reflecting the platform’s broadening appeal across beauty and fashion. Nykaa’s beauty segment achieved revenue of Rs 1,703 crore, marking a 24% YoY increase, while its fashion segment grew 22% YoY to Rs 166 crore. GMV in beauty surged by 29% YoY to Rs 2,783 crore, whereas fashion’s GMV recorded a 10% YoY growth, reaching Rs 863 crore.
Strategic focus on customer acquisition and premium fragrance
Nykaa highlighted that strategic investments in customer acquisition are yielding substantial returns, with a 31% YoY rise in new customers for the beauty segment. Premium fragrances, an important area within beauty, outpaced the platform’s growth rate during the quarter.
Nykaa’s superstore sees exceptional growth
The Superstore by Nykaa, catering to retailers, posted an impressive 80% YoY increase in GMV for the quarter. The platform’s cumulative transacting retailers rose by 60% YoY, underscoring Nykaa’s expanding footprint in retail partnerships.
On Tuesday, Nykaa’s shares closed 2.09% lower at Rs 179.01 on the NSE.
