Nykaa's Profit Jumps Nearly 200% To ₹9.6 Cr, But Misses Street Expectations

FSN E-Commerce Ventures, the parent company of online beauty and fashion platform Nykaa, reported its results after markets closed on Tuesday.

What Happened: The company posted a net profit of ₹9.64 crore in the April to June period, representing a 192% jump from ₹3.3 crore reported in the same period last year. Sequentially, profit rose 40% from ₹6.9 crore. 

Revenue from operations came in at ₹1,746.11 crore, marking a 22.7% jump from ₹1,422 crore posted in the corresponding quarter last year. The company's operational revenue stood at ₹1,667.98 crore in the previous quarter. 

The numbers fell below analysts' estimates who had expected profit to range between ₹10.6 crore to ₹17.5 crore and revenue to grow by about 28%.

The EBITDA for Q1FY25 stood at ₹96.1 crore, whereas the EBITDA margin was 5.5%.

During the quarter, consolidated gross merchandise value (GMV), which is the total value of merchandise sold within a certain period, grew 25% year-on-year to ₹3,321 crore. GMV for the beauty and personal care segment rose 28%. Nykaa Fashion GMV witnessed growth of 15%.

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Starting this quarter, Nykaa began vertical-wise segmental reporting. The beauty segment which includes the online beauty platform Nykaa, beauty-owned brands and physical stores, among others, reported a revenue of ₹1,594 crore. The fashion segment, encompassing the Nykaa Fashion platform, fashion-owned brands, content platform LBB and the Nykaa Man lifestyle business, clocked in a revenue of ₹149 crore.

The company also announced the acquisition of an additional 39% stake in cosmetic brands Dot & Key. On completion of the said transaction, the company's stake in Dot & Key will increase from the current 51% to 90% of the paid-up capital of Dot & Key. 

Additionally, the board of directors have also approved Nykaa's further investment in skincare brand Earth Rhythm. 

"The company will be acquiring up to 57,302 equity shares and 12,226 warrants of Earth Rhythm through primary and secondary acquisition thereby resulting in Earth Rhythm becoming a subsidiary of the company," Nykaa added in its press release.

Nykaa's founder Falguni Nayar is one the richest businesswomen in India. As of March 2024, her net worth stood at over $3.0 billion (₹25,189 crore). 

Price Action: Nykaa closed 3.39% lower at ₹188 on Tuesday.

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