Beauty and personal care marketplace Nykaa has reported a significant 50% year-on-year increase in net profit, reaching Rs 7.8 crore in the second quarter of FY24.
Notably, the company's revenue from operations grew 22% YoY to Rs 1,507 crore, despite a delayed festive season usually boosting consumer spending.
The company's gross margin dropped by 221 basis points YoY but stabilized since Q1 FY24. Nykaa's EBITDA margin grew to 5.4%, up 32% YoY, due to cost efficiencies.
Fulfilment costs and employee expenses as a percentage of revenue have improved, indicating a more streamlined operation, according to the company's financial results.
The Beauty & Personal Care (BPC) GMV rose by 23% YoY, slightly affected by the festive season shift. Nykaa added 13 stores, reaching 165, with retail making up 8% of BPC GMV.
The "Hot Pink Sale," 'Gen Z Store' launch, Nykaaland festival, and "CSMS" skincare campaign have notably fueled the company's growth.
Nykaa's fashion revenue grew 28% YoY, and NSV rose 32% in Q2 FY24, showing a clear push for profitability. The Superstore by Nykaa's NSV notably surged by 105% YoY.
Despite the financial growth, Nykaa has seen a reshuffle in its executive team, with six key resignations since April, including the chief marketing officer. CEO Falguni Nayar has taken direct oversight of the marketing function.