FSN E-Commerce Ventures, the company behind the beauty and personal care (BPC) brand Nykaa, experienced a 50 per cent surge in net profit in Q2 FY24, rising from Rs 5.2 crore in Q2 FY23 to Rs 7.8 crore. This growth was primarily driven by the robust demand witnessed in its beauty and personal care (BPC) business during the flagship sale event in July.
The festive season holds great significance for e-commerce companies like Nykaa, where they typically conduct a series of sales leading up to Diwali. This year, the sales were slightly delayed compared to the previous year, which had a base impact on the Q2 FY24 growth, as noted by Nykaa in an exchange filing last month.
The 50 per cent increase in net profit was accompanied by a 22 per cent rise in revenue from operations, reaching Rs 1,507 crore in the quarter, up from Rs 1,230.8 crore in the same period the previous year. The company’s Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin also improved from 5 per cent in Q2 FY23 to 5.4 per cent in Q2 FY24.
In the BPC category, the company heightened its discounting efforts due to the proliferation of homegrown and international brands prioritising the Indian market, according to Nykaa.
Total expenses for Nykaa in Q2 FY24 amounted to Rs 1,502 crore, reflecting a 22 per cent increase from Rs 1,229 crore in the same period the previous year.
In Q1 FY24, the Mumbai-based company had reported a net profit of Rs 5.4 crore and revenues of Rs 1,422 crore.
With a strong performance in the first half of the fiscal year, Nykaa anticipates a favorable outlook for the rest of the year, as the second half historically witnesses heightened consumer demand.
