Nykaa’s revenue from operations showed steady growth, increasing 6% compared to the previous quarter and 22% year on year. In addition, its profit margin for the second quarter rose 0.5%, marking a 10 basis point increase from the previous year.
FSN E-commerce ventures, the parent company of Nykaa, announced a significant growth of 44% in net profit for the second quarter. The company’s net profit reached ₹7.8 crore, compared to ₹5.4 crore in the previous quarter. Additionally, revenue from operations increased to ₹1,507 crore, a 6% growth from ₹1,421 crore in the previous quarter.
Despite a delayed festival season during the second quarter, Nykaa managed to achieve a 22% year on year growth in revenue. The company also experienced a remarkable 50% increase in net profit year on year. Furthermore, its earnings before interest tax depreciation and amortization (EBITDA) grew 32% to ₹80.6 crore in Q2 FY24.
Nykaa attributed these positive results to the continuous improvement in the quality of their business operations. The EBITDA margin expanded to 5.4% during the quarter, reflecting a 32% growth year on year. The company successfully optimized both direct and indirect costs, leading to greater efficiency. In addition, the fulfillment cost as a percentage of revenue decreased to 9.7% from 11.8% in the previous year’s second quarter.
During the quarter, Nykaa also witnessed a decrease in employee expenses as a percentage of revenue, demonstrating further improvements in this area. Its profit margin increased to 0.5% YoY, while the gross merchandise value (GMV) experienced a 25% growth, reaching ₹2,943 crore.
The company’s beauty and personal care business, which serves as its core segment, saw substantial growth with a 23% increase in net sales value. Nykaa attributed this growth to the rising popularity of home-grown and international beauty brands in the Indian market. Additionally, Nykaa expanded its retail presence, opening 13 new stores in the quarter, bringing the total number of stores to 165. The retail business now accounts for 8% of the overall BPC gross merchandise value (GMV).
Nykaa’s fashion business also showed promising growth, with consolidated revenue from operations amounting to ₹130 crore and a 28% year on year increase, although starting from a low base. This indicates positive prospects for the company’s fashion segment.
Overall, Nykaa’s second-quarter performance showcases its strong financial growth and emphasizes its position as a leading player in the e-commerce industry, particularly in the beauty and personal care sectors. With its continuous expansion and improved business operations, Nykaa is well-positioned for future success.