Stock market today reacted strongly on FSN E-Commerce Ventures Ltd Q1 results 2023, which was announced on Friday after the market hours. Nykaa share price today witnessed heavy beating during early morning deals and hit intraday low of ₹130.10 apiece on NSE within few minutes of stock market’s opening bell, logging around 11 per cent dip from its Friday close of ₹146.20 per share. This is the first trade session after announcement of Nykaa Q1 results 2023 and market observers are looking at this stock price crash as Dalal Street reaction to the stock after first quarter results of the company for current financial year.
On reasons for dip in Nykaa share price today, Vaibhav Kaushik, Research Analyst at GCL Broking said, “Nykaa shares are nosediving today due to two major reasons — not so encouraging Q1 results 2023 and weak stock market sentiments.”
GCL Broking expert advised Nykaa shareholders to hold the stock with strict stop loss at ₹125 apiece levels.
Avinash Gorakshkar, Head of Research at Profitmart Securities said, ‘Nykaa results are not too bad but due to weak global sentiments, Dalal Street is reeling under the sell off heat. We may see sharp rebound in the stock if Nifty manages to sustain above 19,250 levels.”
On whether bottom fishing is advisable in regard to Nykaa shares, Vaibhav Kaushik said, “High risk traders can buy Nykaa shares maintaining stop loss at ₹125 apiece levels. There can be sharp bounce back if the stock manages to sustain above its crucial support placed at ₹125 levels.”
Nykaa Q1 results 2023
FSN E-Commerce Ventures, which operates beauty and fashion retailer Nykaa, released its April-June quarter results for fiscal 2023-24 (Q1FY24) on August 11 after the market hours. In Q1FY24 results, FSN E-Commerce Ventures reporting a rise of 8 per cent in total net profit (attributable to the shareholders + non-controlling assets) to ₹5.4 crore, compared to ₹5 crore in the corresponding period last year. However, the company’s net profit attributable to the equity shareholders declined 27 per cent at ₹3.3 crore, compared to ₹4.5 crore in the year-ago period.
The company’s revenue from operations during the first quarter of current fiscal stood at ₹1,422 crore, registering a growth of 24 per cent, compared to ₹1,148 crore in the year-ago period. The company’s total expenses rose 22 per cent to ₹1,418.8 crore during the June quarter, compared to ₹1,148 crore in the last year period.
On the operating front, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter reported a growth of 60 per cent year-on-year (YoY) at ₹73.5 crore, while EBITDA margin stood at 5.2 per cent, up 116 basis points, compared to 4 per cent in the year-ago period.
During the June quarter, Nykaa’s gross merchandise volume (GMV) grew 24 per cent YoY to ₹2,667.8 crore. The physical retail space increased by 43 per cent YoY with 152 stores as of June 30, 2023. GMV of the beauty and personal care segment stood at ₹1,850 crore, reporting a growth of 24 per cent YoY. The segment’s order book grew 17 per cent to ₹0.95 crore during the June quarter.
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Updated: 14 Aug 2023, 10:53 AM IST