Nykaa shares trade rangebound ahead of Q4 earnings; scrip gains 39% in 1 year

Shares of FSN E-Commerce, the parent company of Nykaa, traded in a range in Wednesday’s session (May 22) ahead of its March quarter earnings to be released later today.

At around 9:54 am, shares of the e-commerce company traded with a cut of 0.03 per cent or Rs 0.05 at Rs 177.25, while at day’s high it scaled to Rs 180, gaining 1.5 per cent over the previous close of Rs 177.30.

Analysts expect the new-age company to post a steady Q4 show with growth in both the topline as well as profitability.

Nykaa’s Q4 business update

In its stock exchange filing, the fashion and beauty e-retailer said that it saw growth accelerate in Q4 FY24 with strong gross merchandise value (GMV) growth of early thirties at a consolidated level, on a YoY basis. Further, it added that it expects net sales value or NSV and revenue growth for the March quarter to be in the high twenties on-year.

Nykaa continues to drive the long-term beauty consumption growth in India, said the company’s statement.

Strong offtake from key categories such as makeup and skin, as well as a highly successful ‘Pink Love Sale’ in the quarter has led to overall beauty and personal care (BPC) growth. The company expects its BPC vertical GMV to log around 30 per cent growth during the quarter, while NSV growth is seen in mid-twenties on a YoY basis.

Fashion vertical GMV for the quarter is expected to grow in the high twenties, and NSV growth is expected to be in the mid-twenties on a YoY basis, added the company.

Q3FY24 results

For the December quarter, the company’s profit after tax (PAT) grew 106 per cent on year to Rs 17.5 crore, while PAT margin increased 1 per cent on year versus 0.6 in the same period last year.

Also, revenue from operations at the online services firm grew 22 per cent on year to Rs 1788.8 crore in the quarter. 

“We continue to drive improvement in profitability. EBITDA margin expanded to 5.5% for the quarter, a growth of 26 per cent  YoY driven by direct and indirect costs efficiencies. Fulfilment cost as a per cent  to revenue stood at 9.6 per cent  for the quarter, compared to 10.7 per cent  in Q3 FY2023. Similarly, employee expense as a per cent to revenue stood at 8.3 per cent  for the quarter, compared to 8.7 per cent in Q3 FY2023, witnessing improvements through the last few quarters,” added the company’s filing with the exchange.

Nykaa’s share price performance

Over the past year, Nykaa shares have climbed 39 per cent, while its 1-month return is at 5.7%.