Nykaa Q2 Results Preview: Net profit likely to double YoY; revenue growth seen at 23% led by higher GMV

livemint.com:

FSN E-Commerce Ventures, the operator of omnichannel beauty and fashion retailer Nykaa, will today announce its financial results for the quarter ended September 2023. Nykaa is expected to report strong earnings growth in the second quarter of FY24 with net profit more than doubling on an year-on-year basis, while revenue seeing a decent rise driven by uptick in the beauty and personal care (BPC) segment. However, with the festive season completely in the third quarter this year compared to partly in Q2 last year, the growth in Nykaa’s BPC segment would be limited, analysts said.

Moreover, the Fashion segment is estimated to deliver strong growth amid some green shoots. Also Read: Q2 Results today: Nykaa, HPCL, Divi's Lab, others to announce Q2 earnings Nykaa’s net profit in Q2FY24 is expected to jump 136% to ₹9.7 crore from ₹4.1 crore in Q2FY23, as per analysts’ estimates. The company’s revenue in the quarter ended September 2023 is estimated to grow 23.33% to ₹1,518 crore from ₹1,230.8 crore in the corresponding quarter of last year.

Nykaa’s gross merchandise value (GMV) during the quarter under review is likely to grow by 24% YoY led by BPC segment growth estimated at 21% and Fashion segment growth at 25% YoY. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The company’s operating performance is expected to improve in Q2FY24 driven by positive operating leverage. Earnings before interest, taxes, depreciation and amortization (EBITDA) is estimated to grow 44% to ₹88 crore from ₹61.1 crore, YoY.