Nykaa Q4 results: Share price falls over 2% after Q4 profit plunges nearly 72%
1 min read 25 May 2023, 09:39 AM ISTFSN E-Commerce Ventures, which runs retail stores under the name Nykaa, reported a 71.8% decline in net profit to ₹2.4 crore in Q4FY23 as against a net profit of ₹9 crore in the corresponding quarter last fiscal.
PremiumNykaa share price fell over 2% in the opening trade Thursday after the company’s net profit for the fourth quarter of FY23 declined by nearly 72%. The stock declined as much as 2.39% to ₹122.05 apiece on the BSE.
However, the stock soon recovered and was trading 1.56% higher at ₹127.00, at 9:35 am.
FSN E-Commerce Ventures, which runs retail stores under the name Nykaa, reported a 71.8% decline in net profit to ₹2.4 crore in Q4FY23 as against a net profit of ₹9 crore in the corresponding quarter last fiscal.
Revenue from operations of the online beauty platform rose by 33.7% to ₹1,301.7 crore during the quarter under review from ₹973.3 crore, YoY.
On the operational front, Nykaa's EBITDA increased 84% to ₹70.6 crore during the quarter ended March 2023, from ₹38.4 crore in the corresponding quarter last fiscal. Meanwhile, margins during the quarter came in at 5.4%.
Read here: Nykaa Q4: Net profit declines 71% to ₹2.4 cr, revenue up 34%
Nykaa has reported healthy growth in the online Beauty & Personal Care (BPC) segment and has also maintained market leadership therein. It continues to have a strong recall within premium customer base, Elara Securities said.
“We largely maintain our FY24E GMV estimates in the BPC segment at 25% YoY growth, helped by growth in transacting users and increased frequency from existing customers (78% contribution). Healthy growth in the offline segment (8.3% of GMV) too will aid growth prospects," the brokerage house added..
The online fashion business remained a laggard, with little or no recall among in-house/other brands due to high competitive intensity and sharp discounting trends.
Elara Securities estimates lower growth in the fashion business as Nykaa plans to improve profitability. It reduced overall FY24E/25E EBITDA estimates 9.6%/7.0% on poor visibility of a break-even/profitability in fashion/others segment.
It estimates healthy revenue/earnings CAGRs of 25.8%/38% (FY23E-25E) in the online BPC segment that had 87.1% revenue contribution in FY23. It has a Buy call on the stock with a target price of ₹210 per share.
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