Nykaa Q2 results: Net profit jumps 50% to ₹7.8 crore, revenue up 22%

livemint.com:

FSN E-Commerce Ventures, the operator of online beauty and fashion retailer Nykaa, on November 6 reported a consolidated net profit of ₹7.8 crore in the second quarter of fiscal year 2023-24 (Q2FY24). This is 50 percent higher as compared to ₹5.2 crore clocked in the year-ago period. Sequentially, the net profit increased by 44 percent from ₹5.4 crore reported in the first quarter of the current fiscal.

The company's revenue from operations in Q2FY24 came in at ₹1,507 crore, higher by 22 percent from ₹1,231 crore recorded in the corresponding quarter of the previous fiscal year. Quarter-on-quarter, the revenue from operations was 6 percent as against ₹1,422 crore reported in Q1FY24. The total expenses during the quarter under review also increases by 22 percent on-year, as it came in at ₹1,502 crore as compared to ₹1,228 crore in Q2FY23.

Nykaa's total income during the September 2023 quarter came in at ₹1,516 crore, higher by 22.5 percent as against ₹1,237 crore reported in the year-ago period. The earnings before interest, taxes, depreciation and amortisation (EBITDA) margin “expanded to 5.4 percent for the quarter, a growth of 32 percent YoY on the back of both direct and indirect costs efficiencies", a press release stated. Nykaa noted that the consolidated revenue from operations from its fashion business stood at ₹130.5 crore in Q2FY24, marking an on-year growth of 28 percent.

“Our fashion business continues to scale with improving profitability. Contribution margin as a percent to NSV (net sales value) for Nykaa Fashion was at 4.7 percent in Q2FY24 vs 2.3 percent in Q2FY23, supported by improvement in our pre delivery leakages and marketing expenses," it stated. “New businesses" of Nykaa, which includes the