Nykaa‘s parent firm FSN E-commerce Ventures reported its results for the July to September quarter on Tuesday after markets closed.
What Happened: The online beauty retailer recorded a 71.74% year-on-year jump in its net profit to ₹10.04 crore in the second quarter compared to ₹5.8 crore reported in Q2 of FY23. Sequentially, profit rose 4.2% from ₹9.64 crore. The figure was way below analysts’ estimates who had expected a profit of ₹21.7 crore.
Revenue from operations stood at ₹1,874.74 crore, representing a 24.4% increase from ₹1,507 crore reported in the quarter ended September in FY23. In the June quarter, the company’s revenue came in at ₹1,746.11 crore. Revenue slightly missed analysts’ estimates of 1,888.45 crore.
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The company’s total revenue was ₹1,880.19 crore. The beauty segment, which includes Nykaa’s online beauty platform, owned beauty brands, and physical stores, among other components, generated a revenue of ₹1,702.89 crore. The fashion segment, comprising the Nykaa Fashion platform, fashion-owned brands, the LBB content platform and the Nykaa Man lifestyle business, recorded a revenue of ₹166.09 crore. Revenue from the company’s International beauty business stood at ₹5.76 crore.
In October, Kotak Securities downgraded the firm amid escalating completion from quick commerce. The company is working to expand its same-day and next-day delivery services across 63 cities; however, given the current q-commerce-driven delivery landscape, Nykaa may need to accelerate these efforts to offer even faster delivery options, Kotak noted. This may lead to higher fulfilment costs for quick deliveries for the e-commerce company, the brokerage said.
Price Action: Nykaa closed 2.09% lower at ₹179.01 on Tuesday.
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