News

Published: November 7, 2023
Updated: November 7, 2023

Nykaa's Impressive Q2 Results: Net Profit Surges by 50%

Beauty and fashion retailer Nykaa, operated by FSN E-Commerce Ventures, has reported strong financial results for the second quarter of fiscal year 2023-24 (Q2FY24), with a notable increase in net profit and revenue.

Robust Financial Performance

In Q2FY24, Nykaa achieved a consolidated net profit of ₹7.8 crore, marking a remarkable 50% increase from the ₹5.2 crore recorded in the same period of the previous fiscal year.

Sequential Growth

The net profit also demonstrated strong sequential growth, surging by 44% compared to ₹5.4 crore reported in the first quarter of the current fiscal year.

Impressive Revenue Figures

Nykaa's revenue from operations for Q2FY24 reached ₹1,507 crore, showing a significant 22% growth compared to ₹1,231 crore in the corresponding quarter of the previous fiscal year.

Quarter-on-Quarter Comparison

Furthermore, in a quarter-on-quarter comparison, the revenue from operations in Q2FY24 increased by 6%, compared to ₹1,422 crore reported in Q1FY24.

Rising Expenses

Total expenses for the quarter under review also witnessed a 22% year-on-year increase, amounting to ₹1,502 crore, compared to ₹1,228 crore in Q2FY23.

Overall Income Growth

Nykaa's total income for the September 2023 quarter was ₹1,516 crore, representing a robust growth of 22.5% compared to ₹1,237 crore in the year-ago period.

EBITDA Margin Expansion

The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded to 5.4% for the quarter, marking a substantial 32% year-on-year growth. This was attributed to efficiencies in direct and indirect costs.

Fashion Business Growth

Nykaa's fashion business also demonstrated strong growth, with revenue from operations reaching ₹130.5 crore in Q2FY24, marking a 28% year-on-year increase.

Diversification Success

The company's "new businesses," which include its superstores, recorded net sales value (NSV) of ₹98.6 crore during the second quarter. This segment showed impressive growth, with a 105% increase year-on-year.

Market Response

Ahead of the release of Q2FY24 results, Nykaa's shares saw a positive response in the stock market. The stock settled at ₹147.45 apiece on the BSE, marking a 5.06% increase compared to the previous day's closing price.

Nykaa's Q2FY24 results reflect a substantial increase in net profit and revenue, demonstrating the company's strong performance in the beauty and fashion retail sector. The expansion of the EBITDA margin and growth in the fashion business indicate positive trends for Nykaa's future prospects.