Nykaa Shares Nosedive After Profits Crash 71% In Q3

Shares of Nykaa were down 4.41% to trade at ₹143.05  on Tuesday after the company reported a 70.67% year-over-year drop in net profit at ₹8.2 crore. 

What Happened: FSN E-Commerce – Nykaa's Parent Company – posted its Q3 earning on Monday. The company's total revenue surged 33% YoY to ₹1,468.5 crore in line with market expectations. The company also saw its Gross Merchandise Value (GMV) grow 37% YoY to ₹2,796 crore. 

The beauty and fashion retailer saw its expenses surge over 36% to ₹1,455.7 crore, eating into the company's profits that lead to the company's net profit missing consensus estimates by a wide margin. 

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The omnichannel retailer's flagship Beauty and Personal care segment saw GMV rise 26% YoY to ₹1,901 crore this quarter. Orders in the segment grew 26% YoY to 9.5 million.

In the Fashion segment, GMV grew 50% YoY to ₹724.4 crore in the December quarter. Orders stood at 1.7 million up 31% from the year-ago period.

Talking about the company’s Q3 numbers CEO Falguni Nayar said that "the performance has been especially good given the backdrop of eight fewer festive days in Q3FY23, compared to Q3FY22."

Price Action: Nykaa plunged over 5% to reach an intraday low of ₹142.05 at market open on Tuesday.

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