The operator of omnichannel beauty and fashion retailer Nykaa, FSN E-commerce Ventures reported a consolidated net profit of Rs 16.2 crore for the quarter ended December on Tuesday, which grew 97 per cent year-on-year (YoY) from Rs 8.2 crore in the same quarter last year.
Revenue from operations climbed 22 per cent YoY to Rs 1,789 crore in the reporting third quarter as against Rs 1463 crore in the corresponding quarter of the previous year.
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter increased by 26 per cent YoY to Rs 98.8 crore in the December quarter. EBITDA margins expanded to 5.5 per cent, showing a growth of 26 per cent YoY driven by direct and indirect cost efficiencies.
During the quarter, Nykaa distributed ESOP awards, which are part of employee expenditures. Adjusting for ESOP and new business expenditures, the EBITDA margin would have been 6.1 per cent.
The gross merchandise value (GMV) for the quarter increased by 20 per cent YoY to Rs 761 crore.
Segment-wise, the consolidated BPC (beauty and personal care) GMV increased by 25 per cent YoY. NSV (net sales value) rise was 20 per cent YoY, owing to increased discounting by companies in the mass and masstige segments.
The physical retail presence continues to grow, with 39 new locations opened in the previous four quarters, bringing the total to 174 as of December 2023. The retail sector currently accounts for more than 9 per cent of total BPC GMV, resulting in a 35 per cent YoY increase in EBITDA.
This fashion GMV increased by 40 per cent YoY, driven by a jump in all measures. The annual unique transacting customer (AUTC) climbed by 23 per cent YoY to 2.9 million, while order growth was 19 per cent YoY.
The average order value for the fashion category climbed by 18 per cent YoY during the quarter. According to Nykaa, the fashion industry’s profitability is steadily increasing.
Nykaa Fashion’s contribution margin as a percentage of NSV increased by 510 basis points to 6 per cent in the third quarter, owing to significant improvements in marketing expenditures.
Nykaa’s new businesses, which include the distribution company (Superstore by Nykaa), Nykaa Man, worldwide, content-led platform LBB, and the wellness brand Nudge, generated an NSV of Rs 131 crore in the third quarter.
During Q3FY24, the distribution business NSV grew by 88 per cent YoY. Within two years of inception, Superstore increased GMV by over 31x and currently services around 1.5 lakh transactional shops across 950 cities as of December 2023.
