After A Blockbuster Bourses Debut, Nykaa Reports 96% Fall In Q2 Net Profit
FSN E-Commerce Ventures, the parent entity of Nykaa, saw its market cap double to nearly Rs 1 trillion ($13 billion) during its bourses' debut.
Fashion And Cosmetics E-commerce company--Nykaa posted its fiscal second-quarter earnings, wherein it saw a fall of 96 per cent in its net profit, settling at Rs 1.1 crore in the September quarter on a year-on-year (YoY) basis and 69 per cent, compared with the first fiscal 22 quarter.
FSN E-Commerce Ventures, the parent entity of Nykaa, saw its valuation double to nearly Rs 1 trillion during its bourses' debut. Its shares were listed at Rs 2,018, apiece, 79 per cent premium over its issue price of Rs 1,125 per share, on the National Stock Exchange (NSE) on November 10 2021. The IPO made Falguni Nayar — founder and CEO of the beauty and lifestyle retail company, the richest self-made female billionaire in the country with a net worth of almost $7 billion.
Revenue from operations was up by 47 per cent to Rs 885 crore on a YoY basis. Net income fell to ₹ 1.2 crore ($161,000) in the reporting quarter from ₹ 27 crore the previous year, according to a statement released late Sunday.
The stock opened at Rs 2260 on NSE, down 4.12% from the previous day's market close of Rs 2358.30.
Nykaa’s marketing and advertising expenses soared to 286 per cent to Rs 121 crore in the quarter before IPO debut, whereas it was Rs 31.5 crore in the year-ago period.
“We have maintained growth momentum in our beauty business, accelerated our fashion business, and focused on building the brand with strong marketing campaigns — both digitally and mass media,” said Falguni Nayar, chief executive officer and founder of Nykaa.
“Increased marketing spending has led to an acceleration of customer acquisition, also evident in the unique visitor and transacting customer metrics. The company continues to invest in the expansion of retail stores and fulfilment capacity ahead of the festival season,” she added.
Online fashion retailer’s beauty and personal care division saw a growth of 38% in its gross merchandise value (GMV) to Rs 1,186 crore in the fiscal Q2. The fashion segment’s GMV improved 215 per cent YoY to reach Rs 437 crore.
The fashion segment’s contribution to consolidated GMV grew to 27 per cent compared with 14 per cent on a YOY basis.
Nykaa’s monthly average unique visitors increased to 21 million, up 62 per cent YOY, in the beauty and personal care vertical, and the fashion vertical saw an increase of 16 million, with YoY growth of 328 per cent. The company’s annualised unique transacting customers were 7.2 million in the quarter ended, up 40 per cent YOY in the beauty and personal care vertical, and in the fashion vertical, it stood at 1.3 million, up 417 per cent YOY.