Cosmetics and fashion retailer Nykaa has reported a significant surge in profits for the quarter ended March, buoyed by robust growth in its beauty and personal care segment. The company operated by FSN E-Commerce posted a net profit of ₹9.07 crore, up around 300% compared to a year ago period.
Nykaa’s operating revenue also witnessed a significant uptick, rising 28% year-on-year to reach ₹1,667.9 crore. However, the growth was accompanied by a surge in total expenses, amounting to ₹1,655.4 crore during the quarter.
According to Nykaa’s disclosure to the stock exchanges, its profit after tax for the fiscal year 2024 stood at ₹39.74 crore, up from ₹20.9 crore in FY23.
The beauty and personal care segment, contributing the largest share of the company’s revenues, was the primary driver with gross merchandise value (GMV) witnessing 25% increase to ₹8,340 crore in FY24, indicating its ability to capitalize on modest consumption patterns throughout the financial year.
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In line with its expansion strategy, the FSN E-Commerce board also approved the acquisition of Nykaa Fashion’s western wear and accessories business during the quarter through a slump sale. This segment reported a turnover of ₹37.6 crore as of 31 March.
Additionally, Nykaa Fashion was merged with Illuminar Media’s LBB, a digital lifestyle platform acquired in August 2022, to bolster content discovery and delivery capabilities, according to a separate filing with bourses.
The Falguni Nayar-led firm re-appointed three independent directors—Pradeep Parameswaran, Seshashayee Sridhara, and Santosh Desai—for another three years starting 1 July.
The Board also approved an investment of ₹20 crore in FSN International, a wholly owned subsidary of FSN E-Commerce.
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Published: 22 May 2024, 06:01 PM IST