Nykaa Q2 results: Profit grows 344% on-year; revenue increases 39% to Rs 1,230 cr

Beauty and fashion retailer FSN E-commerce, the parent of Nykaa, announced its Q2 results on Tuesday. It witnessed a 344 per cent year-on-year increase in its net profit for Q2 FY23 period to Rs 5.2 crore. Its consolidated revenue from operations increased 39 per cent year-on-year to Rs 1,230 crore. Its profit before tax (PAT) grew 542 per cent on-year to Rs 8.8 crore in the second quarter. 

The consolidated gross merchandise value (GMV) grew 45 per cent year-on-year to Rs 2,345 crore, while its gross margin saw an uptick of 45.3 per cent in Q2 FY2023 as against 42.7 per cent in the same period last year.

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Nykaa’s EBITDA grew 112 per cent year-on-year to Rs 61 crore. Its EBITDA margin improved 5 per cent in Q2 FY23 as against 3.3 per cent Q2 FY22.

When it comes to its segments, GMV in the beauty and personal care category grew 39 per cent to Rs 1,630 crore, while orders grew 39 per cent on-year to 8.4 million. In the fashion category, GMV grew 43 per cent to Rs 599 crore. 

Speaking on the company’s performance, Nykaa Chairperson, MD and CEO Falguni Nayar said, “Our business has delivered sustainable, strong growth, while investing in capabilities for the future. Our online and offline presence in Beauty has delivered strong growth with improving margins. There has been structural improvement in fulfilment costs as we move to regional warehouses. Post covid, our accelerated investments in new store rollouts as well as store upgradation has resulted in improved footfalls and higher same store sales. Consumer demand for premium beauty, personal care and wellness is showing signs of buoyancy as we gear up for a promising H2 FY23.”

Nayar said that their focus on curation and discovery in fashion is evident as the new season merchandise accounted for 24 per cent of Nykaa Fashion GMV and international brands are at 13 per cent of western wear category. She added that they are also investing in the growth engines of the future, particularly SuperStore by Nykaa. 

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