Nykaa Q3 revenue at ₹1,789 cr helped by festivals, weddings

Beauty and lifestyle retail company FSN E-Commerce Ventures Ltd, known as Nykaa, has recorded a net profit of ₹17.5 crore in the October-December quarter (Q3 FY2024) against ₹8.5 crore profit in Q3 FY23.

The company's revenue from operations grew 22% year-on-year to ₹1,788.8 crore in the quarter on demand boost during festivals and wedding seasons.

The Falguni Nayar-led Nykaa, which made its debut on domestic bourses on November 10, 2021, says its interest, taxes, depreciation and amortisation (EBITDA) grew 26% YoY to ₹ 98.8 crore in Q3 FY2024, while EBITDA margin expanded to 5.5% on direct and indirect costs efficiencies.

The company's consolidated beauty and personal care gross merchandise value (GMV) saw a 25% YoY growth in Q3. "(Net sale value) NSV growth stood at 20% YoY primarily due to higher discounting by brands in mass and masstige segment."

In terms of physical retail footprint, Nykaa opened 39 new stores in Q3, totalling 174 stores as of December 31, 2023. The company says its retail business now contributes to over 9% of the overall beauty and personal care GMV.

During the quarter, Nykaa had also entered into a long-term strategic partnership with Foot Locker, a New York-based specialty athletic retailer.

The new businesses at Nykaa, which include distribution business Nykaa Man, International, content-led platform LBB and its wellness brand Nudge, saw net sale value of over ₹13 crore in Q3 FY2024.

Nyka's net profit in Q2 FY24 was 50% up at ₹7.8 crore from ₹5.2 crore in the year-ago period. The revenue from operations of beauty and fashion e-retailer grew 22% to ₹1,507 crore in the quarter ended September 30, 2023, from ₹1,230.8 crore in the year-ago period.

The largecap stock, with a market capitalisation of ₹45,836.38 crore, closed 0.56% down at ₹160.50 today on the BSE. Brokerage Dolat Analysis and Research in its coverage on Nykaa last month had said that it expected the retail company to report healthy revenue and EBITDA on favourable base and festivity. The brokerage had, however, given "reduce" rating to the stock, with target price of ₹150.

Nykaa's overall profit in FY23 was at ₹24.8 crore, 40% down as compared to ₹41.3 crore in FY22.