Nykaa reports 106% growth in net profit to Rs 17.5Cr in Q3FY24; Revenue climbs 22%

Fashion e-commerce giant Nykaa's parent company, FSN E-Commerce Ventures, has reported a massive 106% year-on-year leap in its net profit for the third quarter ending December 31, reaching Rs 17.5 crore, up from Rs 8.5 crore in the corresponding period last year.

The company credits this uptick to a robust demand during the festive and wedding seasons, alongside strategic sales events like the "Pink Friday Sale" in November 2023. The company's consolidated revenue saw a 22% surge to Rs 1,789 crore.

Functioningexcellence and margin expansion

Nykaa's operational strategy has been laser-focused on enhancing profitability, leading to a 26% year-on-year growth in EBITDA margin to 5.5%. The achievement is primarily due to direct and indirect cost efficiencies. 

Segments wise growth

The company reported a 29% year-on-year increase in its Gross Merchandise Value (GMV), with significant contributions from all divisions. Particularly notable is the beauty and personal care (BPC) segment, which saw a 25% increase in GMV.

The fashion segment also experienced robust growth, with a 40% increase in GMV year-on-year. The expansion is complemented by strategic moves such as the demerger of the eB2B business and further investments in Nykaa Fashion

Improvements in key business metrics

Nykaa's focus on enhancing customer experience and operational efficiency is reflected in its key business metrics. The company's Average Order Value (AOV) across its businesses registered significant growth, with the fashion segment's AOV increasing by 18% year-on-year.

Additionally, the company's unique transacting customer base grew by 23% year-on-year to 2.9 million. These improvements underscore Nykaa's ability to attract and retain customers through high-quality offerings and exceptional service.

Retail expansion 

Nykaa's physical retail footprint continued to expand with the launch of 39 new stores, bringing the total to 174 stores as of December 31, 2023. The retail business now contributes to over 9% of the overall BPC GMV.

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