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Nykaa Q3 Results: Profit Rises But Misses Estimates

Nykaa's Q3 net profit surged 99% to Rs 8.19 crore, as compared to an estimate of Rs 26.2 crore.

<div class="paragraphs"><p>Nykaa's range of nail polishes on display in a store. (Photo: Usha Kunji/BQ Prime)</p></div>
Nykaa's range of nail polishes on display in a store. (Photo: Usha Kunji/BQ Prime)

Online beauty and fashion retailer Nykaa's third-quarter profit rose in the quarter but missed analyst estimates.

The consolidated net profit of FSN E-Commerce Ventures Ltd., the parent company of Nykaa, surged 99% quarter-on quarter to Rs 8.19 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 26.17 crore consensus estimate of analysts tracked by Bloomberg.

The company's profit declined 71% from Rs 27.9 crore in the same period last fiscal. Revenue from operation rose 33% year-on-year from Rs 1,098.4 crore, according to an exchange filing.

FSN E-Commerce Ventures Q3 Highlights (Consolidated, QoQ)

  • Revenue rose 19% to Rs 1,462.8 crore, against the forecast of Rs 1,439 crore.

  • Net profit soared 99% to Rs 8.19 crore, against an estimate of Rs 26.2 crore.

  • Ebitda was up by 28% to Rs 78.19 crore, against an estimate of Rs 90 crore.

  • Margin was at 5.3% versus 5%.

  • Expenses shot up 18% to Rs 1,455.7 crore.

"The business has delivered consistent strong GMV and revenue growth at 37% YoY and 33% YoY, respectively," Falguni Nayar, managing director and chief executive officer at Nykaa, said.

The performance has been especially good, given the backdrop of eight fewer festive days in the third quarter as compared to the same period last fiscal, Nayar said.

"Especially heartening is the rebound of Nykaa Fashion, that has delivered GMV and revenue growth of 50% YoY and 43% YoY, respectively," she said.

Key Highlights

  • Nykaa Pink Friday Sale 2022 achieved 40% YoY GMV growth from the previous year's sale event, with highest single-day visits on Day 1 of the sale. The event was extended to Fashion & Man, with 1,800 plus brands participating, the company said in the exchange filing.

  • Nykaa has increased its own physical store count to 141 stores, including three new-owned fashion stores, with a total area of 1.4 lakh sq ft across 56 cities, as on Dec. 31, 2022.

  • The company has 40 fulfilment centres with a total area of 1.3 million sq ft as on Dec. 31, 2022, according to the filing.

Opinion
Jefferies Cuts Target Price On Nykaa As Urban Consumption Slows

Shares of the company closed 3.26% lower on Monday, ahead of a 0.48% decline in the benchmark Nifty.

Of the 20 analysts tracking the company, 15 maintained a 'buy', three recommended a 'hold' and two suggested 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 110.8%.