Omnichannel cosmetics and fashion platform Nykaa reported a 72% year-on-year rise in its net profit to Rs 10 crore for the July-September quarter on the back of strong revenue growth across its beauty and fashion segments.
However, the profit fell significantly short of market expectations as analysts polled by Refinitiv’s IBES had forecasted a net profit of Rs 28.7 crore.
On the other hand, revenue from operations surged 24% to Rs 1,875 crore on the back of a similar rise in gross merchandise value (GMV) to Rs 3,652.5 crore, Nykaa said in its exchange filing.
At the same time, the company’s gross profit jumped 26% to Rs 821 crore, with the gross margin increasing by 69 basis points to 43.8%.
Nykaa’s shares fell over 2% to close at Rs 179 before the results announcement on Tuesday. While the stock has gained more than 18% over the past year, it has underperformed the benchmark Nifty 50. Nykaa’s market capitalization currently stands at over Rs 51,000 crore.
Nykaa’s beauty segment posted a 29% increase in GMV on high demand for premium fragrances and its Hot Pink Sale event, which attracted 23 million unique visitors. Sales of Nykaa’s owned beauty brands rose 48% in GMV. The fashion segment recorded a GMV growth of 10%, with its gross margin expanding by 567 basis points to 49.7%.
The company added two flagship beauty stores in Q2. Its total store count now stands at 210. It launched 170 new beauty brands and 260 fashion brands on its e-commerce platform in the quarter.
Its eB2B platform, Superstore by Nykaa, saw GMV grow 80% year-on-year, to extend its retailer network to 1,060 cities and achieve a 60% increase in orders. Nykaa’s cumulative customer base expanded by 31% to 37 million.
EBITDA Growth and Margins
Nykaa’s EBITDA jumped 29% on-year to Rs 103.7 crore, with the EBITDA margin inching up to 5.5%. Adjusted EBITDA, excluding ESOP expenses and other costs, grew 39% to Rs 115.5 crore, with a margin of 6.2%.
Profit before tax surged 60% to Rs 21.3 crore, while net profit margin saw a 17 basis-point improvement. However, marketing and sales expenses rose by 40% to Rs 286 crore.
