Nykaa’s net profit rises 187% to Rs 6.9 crore, revenue up 28% in Q4

FSN E-Commerce Ventures, parent of online beauty products seller Nykaa, on Wednesday reported a consolidated net profit of Rs 6.93 crore for the quarter ending on March 31 (Q4) in the financial year 2023-24 (FY24). At 187.4 percent, this was a near two-fold increase in net profit, compared to Rs 2.41 crore reported in the year-ago period.

The company has also appointed Santosh Desai as an independent director with effect from July 15, 2024. Desai served as the CEO of Future Brands and also as the President of McCann-Erickson, one of India’s premier advertising agencies.

Consolidated revenue from operations grew by 28.1 percent to Rs 1,667.98 crore year-on-year (Y-o-Y) from Rs 1,301.72 crore. Segment-wise, FSN's beauty and personal care (BPC) business saw revenue growth of 24 percent year-on-year to Rs 1,389 crore. The gross merchandise value (GMV) for this segment surged by 30 percent Y-o-Y to Rs 2,120 crore, while the net sales value (NSV) for the BPC business also rose by 24 per cent year-on-year to Rs 1,271 crore.

The fashion business revenue also grew by 27 percent Y-o-Y to Rs 1,334 crore for the March quarter. The GMV for the fashion segment mirrored this growth, increasing by 27 percent year-on-year to Rs 842 crore. Other business segments saw even more significant growth, with revenue jumping by 90 percent year-on-year to Rs 146 crore. The GMV for these segments grew by 68 percent Y-o-Y to Rs 255 crore.

The company’s owned brands in FY24 have crossed Rs. 15,000 million and grown 39 percent in FY2024. Dot & Key, which was acquired in September 2021, is now at Rs. 6 billion GMV run rate (Q4 FY2024 annualised), scaling 10x since its acquisition. Nykaa Fashion’s house of brands continue to scale well across Nykaa Fashion as well as other online and offline channels, and now contributes 12.7 percent to its overall fashion GMV. Its athleisure and lingerie brand “Nykd” has been scaling well too and has grown 14x in three years of its launch with Q4FY24 annualised GMV run rate of Rs. 1.7 billion.

Nykaa distribution business, Superstore by Nykaa (beauty B2B platform) at present serves over 1.95 lakhs transacting retailers and has expanded to over 1,000 cities-- it witnessed strong GMV growth of 84 percent Y-o-Y in FY2024. Meanwhile, its omnichannel beauty platform – Nysaa— in the GCC region has incurred the highest BPC per capita spend of US$500+, which presents a curated selection of international brands including Kylie Cosmetics, Kay Beauty, Foreo, Ralph Lauren, among others.

In addition to these financial results, the company's board has approved an investment of Rs 20 crore in FSN International, a wholly-owned subsidiary, on a rights basis. FSN International is set to further invest approximately $1.9 million in one of its overseas arms, indicating continued expansion and strategic investment in its international operations.

For the entire financial year, the company reported a 67.5 percent Y-o-Y growth in net profit at Rs 32.3 crore, from Rs 19.3 crore. Consolidated revenue from operations grew by 24.1 percent to Rs 6,385.6 crore, from Rs 5,143.8 crore reported at the end of FY23.