FSN E-Commerce Ventures, the parent of the online beauty e-commerce platform Nykaa, reported a 33.4 per cent increase in net profit at Rs 4.55 crore in the first quarter of 2022. The company had posted a net profit of 3.41 crore in the year-ago period.
The e-commerce platform profit decreased 47.6 per cent from Rs 8.56 crore in the previous quarter of Q4 FY 22 The company's revenue from operations rose 40.5 per cent to Rs 1148.421 crore in the quarter under review, against Rs 816.991 crore in the same quarter last fiscal.
Nykaa's gross merchandise volume GMV increased 47 per cent YoY to Rs 2155.8 crore during the quarter.
Its EBITDA increased by 71 per cent to Rs 46.1 crore in Q1 FY 23. The EBITDA margin as percentage of revenue from operations increased to 4 per cent compared to 3.3 per cent in the same quarter last fiscal, led by improvement in gross margin and efficiency in fulfilment expense, Nykaa said in a regulatory filing.
The beauty vertical is witnessing growth momentum, while building efficiencies across the value chain, according to the results, according to the Executive Chairperson, MD and CEO, Falguni Nayar. As a result of the significant discipline we ensured in our retail store business during the COVID affected periods, we are now witnessing the positive effect of scale on our unit's economics, especially with the return of offline shopping behaviour. We are gearing up for a promising festive season this year because of the early signs of recovery in consumer demand for beauty, personal care and wellness. With developments in platform experience and assortment depth, we continue to invest in building a unique customer proposition in fashion. We also strengthened our purpose led brands portfolio with the launch of Twig Twine, Gloot, Azai and the acquisition of Kica. The growth of Fashion over Q 3 and Q 4 last year comes as a result of these building blocks and the industry witnessing a revival as factors such as mobility and travel improve, Nayar said.
We remain focused on investing in growth engines of the future, particularly Superstore by Nykaa, Nykaa Man and international operations. In each of these areas, our efforts are to build the business model in a sustainable manner. She added that we are witnessing promising revenue growth in these ventures, giving us confidence in our ambitions.
The shares of Nykaa fell 1.69 per cent to Rs 1,420 apiece on the BSE on Friday.