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Nykaa share rises more than 5% after reporting ₹5.2 crore gain in Q2

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  • Nykaa, reported over 300% year-over-year growth in net profit to ₹5.2 crore for Q2 FY23.
  • Meanwhile, second quarter revenue grew 39% to 1,230 crore from ₹885 crore last year.
  • Shares of the company rose more than 5% after the release of its quarterly results.
  • Nykaa expects the second half of the year to be better due to the wedding season, the Nykaa Pink Friday sale and the holiday season.

FSN E-Commerce Ventures, the parent company of online beauty and fashion retailer Nykaa, reported net profit growth of more than 300% to 5.2 crore in July-September, from ₹1.2 crore last year. Consecutively, Nykaa’s net profit grew marginally by 3.6% from ₹5 crore in the June quarter. However, costs have also increased as the company continues to invest in fulfillment centers, new stores and office space.

Meanwhile, sales grew 39% to 1,230 crore in the September quarter, from ₹885 crore last year. The operating margin improved to 5% in the second quarter, compared to 3.3% last year.

However, costs for the e-commerce platform continue to rise due to marketing and employee benefits costs. Total expenses during the quarter increased to 706 crore from ₹467 crore last year.

Nykaa says consumer demand for premium products in the beauty, wellness and personal care segments is showing stable growth, despite some inflationary impact among consumers nationwide. “Post Covid, our accelerated investments in new store rollouts and store upgrades have resulted in improved footfall and increased sales in the same store. Consumer demand for premium beauty, personal care and wellness is showing signs of resilience as we prepare for a promising H2 FY23,” said Falguni Nayar, Executive Chairman, MD and CEO at Nykaa.

Shares of the company rose more than 5% after the release of its quarterly results.

Particularities Q2 FY23 Q1 FY23 Q2 FY22
Revenue from operations ₹1,230 crores ₹1,148 crore ₹885 crore
Net profit ₹5.2 crore ₹5 crores ₹1.2 crore
EBITDA margin 5% 4% 3.3%


Nykaa expects the second half of the year to be better due to the wedding season, the Nykaa Pink Friday sale and the holiday season.

“It looks like the pandemic is now firmly in the rearview mirror and so we look forward to a healthy and strong second half of the year. For retail companies, the third quarter is usually the strongest quarter, so we look forward to a good festive season with no impact of a pandemic. We are optimistic about good performance in not only online but also in our offline retail business,” Nykaa’s Achint Nayar said at a press conference after the win.

“The end of November is a good period for e-commerce in general. November is also the wedding season. In early December, some festivities also anticipate the coming holiday season. We just hope that some of the consumption we see for e-commerce, along with omnichannel, continues,” Nayar said in a profit call.

The beauty, wellness and fashion products e-commerce company collaborates with more than 3000 brands and 22 global brands that sell their products on Nykaa’s platform.

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