FSN E-Commerce Ventures Ltd (Nykaa) on Tuesday said its net profit for the December quarter grew 106 per cent year-on-year (YoY) to Rs 17.50 crore. Revenue from operations grew 22 per cent YoY to Rs 1,788.80 crore for the same period.
Nykaa said its Ebitda for the quarter rose 26 per cent YoY to Rs 98.80 crore. Ebitda margin came in at 5.5 per cent against 5.3 per cent YoY. Adjusted for ESOP and new business expenses -- in multi-brand retail operations in GCC, ‘Nysaa’, Ebitda margin was 6.1 per cent, Nykaa said.
We continue to drive improvement in profitability. Ebitda margin expanded to 5.5 per cent for the quarter, a growth of 26 per cent YoY driven by direct and indirect costs efficiencies. Fulfilment cost as a percentage of revenue stood at 9.6 per cent for the quarter, compared with 10.7 per cent in Q3 FY2023," Nykaa said.
Nykaa said employee expense as percentage of revenue stood at 8.3 per cent for the quarter compared with 8.7 per cent in the year-ago quarter, witnessing improvements through the last few quarters.
Segment-wise performance
Beauty & Personal Care (BPC): The consolidated BPC GMV witnessed an industry leading growth of 25 per cent YoY, as we continue to gain share while being the largest specialty beauty retailer of the country.
NSV growth stood at 20 per cent YoY primarily due to higher discounting by brands in mass and masstige segment. Physical retail footprint continues to expand with 39 new stores launched over the last 4 quarters, totalling 174 stores as of December 31, 2023.
The retail business now contributes to over 9 per cent of the overall BPC GMV. This is reflected in Ebitda improvement of 35 per cent YoY. Nykaa's owned brands in beauty experienced a strong GMV and NSV growth of 40 per cent YoY and 36 per cent YoY, respectively, with three brands witnessing significant scale.
"Dot & Key – our new age D2C skin care brand is now at a Rs 500 crore GMV run rate, scaling 8x since its acquisition. Nykaa Cosmetics continues to receive much customer love and has achieved a Rs 400 crore GMV run rate. Kay Beauty, India’s largest celebrity beauty brand, has witnessed rapid growth and acceptance, achieving over Rs. 200 crore GMV run rate, within 4 years of launch," it said.
Fashion: The fashion GMV witnessed a growth of 40 per cent YoY led by strong growth across all metrics. Annual unique transacting customer (AUTC) grew at 23 per cent YoY to 2.9 million, Order growth at stood at 19 per cent YoY and AOV were up 18 per cent YoY, as on December 31, 2023.
"Our fashion business is showing consistent improvement in profitability reflecting our platform strength and quality of our customers. Contribution margin as a per cent to NSV for Nykaa Fashion improved by 510 bps and stood at 6.0 per cent in Q3 FY2024 vs 0.9 per cent in Q3 FY2023. This was supported by strong improvement in our marketing expenses, down to 23.9 per cent vs 28.6 per cent a year ago," Nykaa said.
During the quarter, Nykaa entered into a long-term strategic partnership with Foot locker, a New York-based specialty athletic retailer. Nykaa Fashion will serve as the exclusive e-commerce partner and operate Foot Locker's India website and retail authorised merchandise on Foot Locker branded shop on Nykaa’s existing ecommerce platforms.
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