Nykaa Q3 Results: Cosmetics-to-fashion retailer's net profit slumps 71%

Nykaa on Monday reported a net profit of Rs 8.2 crore for the quarter ended December 2022, down 70.7 per cent compared with the corresponding period a year ago. 

Revenue of the cosmetics-to-fashion retailer — whose stock debuted in the secondary market in November 2021 — grew 33.2 per cent on a year-on-year basis to Rs 1,462.8 crore, according to a regulatory filing.

The business has delivered consistent strong gross merchandise value (GMV) and revenue growth, said Falguni Nayar, Executive Chairperson, MD and CEO, Nykaa. 

"The performance has been especially good given the backdrop of eight fewer festive days in the quarter compared to Q3FY22 (October-December 2021)... Fashion now contributes to 25.9 per cent of GMV," she said. 

The company reported 37 per cent growth in its overall GMV to Rs 2,796.5 crore, according to a company statement. GMV from the beauty and personal care (BPC) segment grew 26 per cent and that from its fashion unit expanded 50 per cent. 

The company's EBITDA margin came in at 5.3 per cent for the October-December period, as against 6.3 per cent for the year-ago period. 

The company's cost of material consumed declined 5.9 per cent to Rs 16.6 crore for the three-month period compared with the year-ago quarter.  

Its employee expenses, however, surged 36.8 per cent on a year-on-year basis to Rs 127.9 crore. 

Nykaa shares declined 3.3 per cent to Rs 149.7 apiece on BSE ahead of the earnings announcement. 

The Nykaa stock has grown 7.3 per cent in value in the past one month, a period in which the Nifty50 benchmark has declined 0.7 per cent.

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