Strong demand boosts Nykaa net profit 42% 

Our Bureau | Updated on: Aug 05, 2022
The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain

The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain | Photo Credit: ANUSHREE FADNAVIS

The consumer demand for beauty, personal care and wellness is also showing early signs of recovery with the return of offline shopping behaviour

FSN E­Commerce Ventures, beauty products retailer Nykaa’s parent company, reported net profit after tax of ₹5 crore for the quarter ended June 30, a 42 per cent growth from ₹3.52 crore recorded in the year ­ago period. 

On a sequential basis, the company’s net profit after tax slipped by 34 per cent from Q4 FY22.

The company reported revenue from operations of ₹ 1,148.4 crore — up 40.58 per cent from Q1 FY22 at ₹ 816.69 crore. Sequentially, the revenue from operations grew by 17.8 per cent, a quarter-on-quarter basis for Q1 FY 2023.

Growth across verticals

Falguni Nayar, Executive Chairperson, MD, and CEO, said, “Our business continues to grow across the verticals, despite an adverse and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-first experiences. The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain. As a result of the significant discipline that we ensured in our retail store business during the COVID affected periods, we are now witnessing the positive effect of scale on our unit economics, especially with the return of offline shopping behaviour. The consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year.”

She said, the company is focusing on investing in building a unique customer proposition in fashion, with developments in platform experience and assortment depth. “We also strengthened our purpose led owned brand portfolio, through the launch of Twig & Twine, Gloot, Azai and the acquisition of Kica. The sequential growth of fashion over Q3 and Q4 of last year comes as a result of these building blocks along with the industry witnessing revival as factors such as mobility and travel improve.”

Nykaa also confirmed board approval for the acquisition of LBB (Iluminar Media Pvt Ltd), a millennial-focussed lifestyle discovery platform.

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Published on August 05, 2022
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