FSN E-Commerce Ventures, the managing company of fashion brand Nykaa, has reported a net profit of Rs 28 crores which is 59% lower than Rs 69 crores, which is the net profit for the corresponding period last year. The company saw higher expenses in the quarter as it also witnessed a reduced demand for personal care and fashion products.
On a sequential basis, the company’s PAT more than doubled since the profits for the quarter ended on September 2021 was only Rs 12 crores. Revenues grew 36% as it reached Rs 1,098.36 crores. The company’s EBITDA was Rs 69 crores as it had a margin of 6.3%, almost double the margin of Q2FY22.
The company has provided better results sequentially as its Gross Merchandise Value grew 49% YoY and 26% QoQ to Rs 2,043.5 crore in this quarter. “We continue to be on a steady growth trajectory across both beauty and fashion businesses. Growth in the beauty business accelerated in a relatively normalised Covid environment, with a strong revival in the cosmetics category,” said Falguni Nayar, MD and CEO of the company.
Nykaa’s IPO was considered to be one of the most successful IPOs of 2021 as the company saw a 10+% listing gain on its opening day. However, the share has been on a decline as it trades near Rs 1800. However, after the company posted its results, the scrip witnessed a complete gap down opening and fell over 3% in early trading hours.
Highlight by Aman Agarwal.