Nykaa Q3 results: Net profit almost doubles to Rs 16 crore

Lifestyle e-commerce platform Nykaa on Tuesday reported a 97.55 per cent rise in its consolidated net profit to Rs 16.18 crore for the December 2023 quarter. The company's net profit stood at Rs 8.19 crore in the corresponding quarter of the previous year.

Its revenue from operations rose 22.28 per cent to Rs 1,788.79 crore in the quarter under review from Rs 1,462.82 crore a year ago, according to a regulatory filing.

A company statement said that the EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin expanded to 5.5 per cent for the quarter, marking an annual growth of 26 per cent, driven by direct and indirect cost efficiencies.

The company rolled out ESOP (employee stock ownership plan) grants for critical and top talent across the organisation level, which is reflected in employee expenses. Employee expense as a percentage of revenue stood at 8.3 per cent for the quarter compared to 8.7 per cent in Q3 FY23, it added.

The company said its fashion segment witnessed a 40 per cent rise year-on-year, whereas the consolidated Beauty & Personal Care (BPC) segment grew by 25 per cent.

FSN E-Commerce Ventures Limited, the parent organisation of Nykaa, is going to infuse additional equity into Nykaa Fashion Limited to be utilised for repayment of loans given by the company, as per the statement. The company launched 39 new stores over the last 4 quarters, totalling 174 as of December 31, 2023.

Nykaa is an e-commerce platform offering fashion and lifestyle products from over 6,200 brands through its digital platforms and across 174 retail stores.

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