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Business News/ Companies / Nykaa’s Q4 net profit jumps to 9.07 cr
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Nykaa’s Q4 net profit jumps to ₹9.07 cr

The Falguni Nayar-led firm posted a net profit of ₹9.07 crore in Q4, up around 300% compared to a year ago

Nykaa's operating revenue also witnessed a significant uptick, rising 28% year-on-year to reach ₹1,667.9 crore. (Bloomberg)Premium
Nykaa's operating revenue also witnessed a significant uptick, rising 28% year-on-year to reach 1,667.9 crore. (Bloomberg)

Cosmetics and fashion retailer Nykaa has reported a significant surge in profits for the quarter ended March, buoyed by robust growth in its beauty and personal care (BPC) segment. The company operated by FSN E-Commerce posted a net profit of 9.07 crore, up around 300% compared to a year ago period.

Nykaa's operating revenue also witnessed a significant uptick, rising 28% year-on-year (y-o-y) to reach 1,667.9 crore. However, the growth was accompanied by a surge in total expenses, amounting to 1,655.4 crore during the quarter.

According to Nykaa's disclosure to the stock exchanges, its profit after tax for the fiscal year 2024 stood at 39.74 crore, up from 20.9 crore in FY23.

The beauty and personal care segment, contributing the largest share of the company's revenues, was the primary driver with gross merchandise value (GMV) witnessing 25% increase to 8,340 crore in FY24, indicating its ability to capitalize on modest consumption patterns throughout the financial year.

Also Read: Myntra is selling lipstick and blush. Should Nykaa be worried?

In line with its expansion strategy, the FSN E-Commerce board also approved the acquisition of Nykaa Fashion's western wear and accessories business during the quarter through a slump sale. This segment reported a turnover of 37.6 crore as of 31 March. 

Additionally, Nykaa Fashion was merged with Iluminar Media's LBB, a digital lifestyle platform acquired in August 2022, to bolster content discovery and delivery capabilities, according to a separate filing with bourses.

The Falguni Nayar-led firm reappointed two independent directors—Pradeep Parameswaran and Seshashayee Sridhara—for another three years starting 1 July. The firm appointed Santosh Desai, the MD and CEO of Futurebrands India, as an independent director effective 15 July.

The Board also approved an investment of 20 crore in FSN International, a wholly owned subsidiary of FSN E-Commerce.

The consolidated GMV growth for BPC segment in Q4 FY2024 was 30% y-o-y, driven by increased customer acquisition resulting in order growth. Colour cosmetics, skincare and haircare along with emerging categories such as fragrances and body care stood out, according to the firm.

The consumer brand added 42 physical stores during the year, taking its retail footprint to 187 stores across 68 cities.

The GMV of Nykaa Fashion—the company’s second-largest business—increased 27% in FY24 compared to the previous year, thanks to growth in select categories including lingerie and activewear.

Nykaa forayed into the Gulf Cooperation Council (GCC) region last quarter with the launch of Nysaa, an omnichannel beauty platform. Through its subsidiary FSN International, the firm said it will make an investment of $1.9 million into Nysaa, according to a regulatory filing.

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ABOUT THE AUTHOR
Sowmya Ramasubramanian
Sowmya is a Senior Correspondent at Mint. An alumnus of Asian College of Journalism, Sowmya is deeply interested in covering sectors at the intersection of consumer and technology as well as healthcare and the venture capital ecosystem. Previously, Sowmya worked for the editorial team at YourStory. Her earlier stints include long form journalism at The Morning Context and technology reporting at The Hindu in Chennai.
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Published: 22 May 2024, 06:01 PM IST
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