Nykaa Q2 net profit grows by 50% year-on-year to Rs 7.8 crore

NEW DELHI: Nykaa’s net profits increased to Rs 7.8 crore in the September quarter on a consolidated basis from Rs 5.2 crore in the year ago period. Revenue from operations grew by 22% year-on-year to Rs 1,507 crore during the quarter. “This is despite the festive season witnessing a delay this year, moving into October versus commencing in September last year,” the company said in a statement on Monday.

Nykaa’s gross merchandise value or GMV for the quarter stood at Rs 2,943 crore, registering a y-o-y growth of 25%. ‘The consolidated BPC (beauty and personal care) GMV grew at 23% y-o-y…discounting has increased in this category due to proliferation of a number of home-grown brands as well as increasing number of international brands making India a priority market,” the company said adding that about 8% of its total BPC GMV now comes from the physical stores.

“The festive season is a big driver for consumption in beauty category and a shift of around 20 days in the festive calendar has resulted in some growth being impacted for the quarter. H1FY24 BPC performance sets up Nykaa well for the year with second half historically witnessing superior consumer demand,” the firm said.

For its fashion segment, revenue from operations on a consolidated basis surged by 28% y-o-y to Rs 130.5 crore during Q2. This was partly helped by an increase in annual unique transacting customers which grew 30% y-o-y to 2.8 million as on September 30, 2023. “Our fashion business continues to scale with improving profitability,” Nykaa said. The overall business, the omni-channel retailer said, saw EBITDA margin expand to 5.4% during the quarter, a growth of 32% y-o-y on the back of both direct and indirect cost efficiencies.

Share price of Nykaa ended at Rs 147.45 apiece on the BSE on Monday, up 5.10%.