Nykaa shares rose nearly 3% FSN E-commerce, which operates under the Nykaa brand, posted a nearly 57% fall in its consolidated profit at 1,390 on the BSE in early deals on Monday. 7.57 crore for the fourth quarter ended March 2022, mainly on account of fresh investments.
Its revenue from operations increased by more than 31% 973 crore during the quarter under review, from 740.5 crore in the year-ago period.
Nykaa’s Q4FY22 revenue performance was in line with road estimates. The analysts at ICICI Securities love the high investment in developing new businesses with flexible BPC margins.
“Regionalization of warehousing was very necessary to drive better consumer experience, as horizontal players are already providing better consumer experience. The eB2B business presents good long-term potential, with massive gains likely to accrue to the core business as well, the brokerage house said in a note.
Gross Merchandise Value (GMV) up 29% in the beauty and personal care vertical 1,248.5 crore in the quarter to March 2022 964.5 crore a year ago. The fashion vertical registered a growth of 84% during the quarter from 482.7 crores 262 crores ago.
“Competition is likely to intensify from both vertical and horizontal peers. While we expect BPC revenue to grow, we believe Nykaa’s journey may be different – to drive this growth by taking it more mainstream “According to ICICI Securities. it has kept on hold nayaka share with a target price of 1,300.
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