Online fashion retailer Nykaa reported its net profit of Rs 4.5 crore for the quarter-ended June, a rise of 32.4% from Rs 3.4 crore during the corresponding period last year.
The company’s topline for Q1 grew 40.6% to Rs 1,148.4 crore compared to Rs 817 crore year-on-year. On the operational front, Nykaa fared relatively well with its Ebitda expanding a little over 70% to Rs 45.9 crore versus Rs 26.9 crore y-o-y.
The company’s Ebitda margin for Q1 came in at 4% versus 3.3% y-o-y.
The upmove in the FSN E-commerce operated beauty and personal care (BPC) company’s net profit was also propelled by higher other income of Rs 8.4 crore vs Rs 4.7 crore year-on-year. Tax expenses, however, increased to Rs 2.7 crore versus a credit of Rs 37 lakh y-o-y.
Nykaa’s stock ended 1.7% lower at Rs 1,420 apiece on NSE as of Friday’s close.
“Our business continues to grow across verticals, despite an adverse and challenging macroeconomic environment, demonstrating strength of our business fundamentals. The beauty vertical, online and offline, is witnessing strong growth momentum while building efficiencies across the value chain,” said Falguni Nayar, managing director, chief executive officer and chairperson, Nykaa.
Segmentally, the company's beauty and personal care vertical saw a growth of 39% in its gross merchandise value (GMV) to Rs 1,489 crore y-o-y, while its fashion vertical registered a 59% growth for the same period, to Rs 582 crore.
Commenting on the investment in new growth verticals, Nayar said in a statement, “We continue to invest in building a customer proposition in fashion, with developments in platform experience and depth in assortment. The sequential growth of the fashion vertical over Q3 and Q4 comes as a result of these, along with a revival in factors such as mobility and travel.”
Nykaa claims to offer over 4,000 brands and 3.1 million product stock-keeping units (SKUs) through its website and mobile app.
“We remain focused on investing in growth engines, particularly Superstore, Nykaa Man and international operations,” Nayar added in the statement.
On a sequential basis, Nykaa’s net profit saw a dip of 42.3% quarter-on-quarter while topline and operational figures showed growth of 18%+ each. Ebitda was unchanged at 4% q-o-q.
