Nykaa Q2 net profit rises over 330%; shares surge. Key highlights
1 min read . Updated: 01 Nov 2022, 01:41 PM IST
Premium- Nykaa shares rose over 4% on the BSE in afternoon deals after Q2 results
FSN E-Commerce Ventures Ltd, which runs online fashion retailer Nykaa, on Tuesday reported a consolidated net profit of ₹5.2 crore during the second quarter of the current fiscal (Q2 FY23), up more than 330% as compared to ₹1 crore in the year ago quarter. The company had reported a profit of ₹5 crore in the previous quarter of June 2022.
Meanwhile, the company's revenue from operations rose over 39% to ₹1,230 crore from ₹885 crore in the corresponding quarter of the previous fiscal, whereas it was up 7% from ₹1,148.4 crore quarter-on-quarter (QoQ).
During the quarter, the company said it continued to demonstrate strong GMV growth with improvement in gross margin, efficiency in fulfilment and marketing cost lead to improvement in EBITDA margin year-on-year (YoY).
Further, Nykaa has increased its own physical store count to 124 stores, including two new Fashion stores, with a total area of 1.2 Lacs sq. ft. across 53 cities, as of September 30, 2022.
“Our online and offline presence in Beauty has delivered strong growth with improving margins. Consumer demand for premium beauty, personal care and wellness is showing signs of buoyancy as we gear up for a promising H2 FY23. Our focus on curation and discovery in Fashion is evident, as new season merchandise accounted for 24% of Nykaa Fashion GMV; international brands are at 13% of western wear category GMV in Q2 FY23. Digital marketing costs for the fashion business are slightly higher than during covid period, resulting in marketing costs sustaining at Q2 FY22 levels," said Falguni Nayar, Executive Chairperson, MD, and CEO.
Shares of Nykaa rose more than 4% to ₹1,208 apiece on the BSE in Tuesday's afternoon deals. Nykaa shares got listed in November last year and the stock has declined more than 48% since its market debut.
Earlier this month, Nykaa announced that its board has approved the issuance of bonus equity shares of the company in the ratio of 1:5 i.e., the company will issue bonus of 5 shares for every 1 share held as on the record date. The company has revised its record date for the purpose of determining members eligible for bonus equity shares to November 11, 2022.
