Nykaa's Q3 net profit down 68 percent to Rs 9 crore
FSN E-commerce, the parent company of Nykaa witnessed a 68 percent decline in net profit to Rs 9 crore ($1.1 million) for the third quarter ended December 2022, as against Rs 29 crore posted in the year-ago period.
The company’s revenue for the quarter rose by 33 percent to Rs 1,462 crore, as against Rs 1,098 crore reported in the corresponding period of the previous fiscal year.
Nykaa’s expenses for the October-December quarter rose by 36 percent to Rs 1,455 crore as compared to Rs 1,067 crore in the last year’s corresponding quarter.
Commenting on the results, Falguni Nayar, executive chairperson at Nykaa in a statement said, “The business has delivered consistent strong GMV and revenue growth at 37% YoY and 33% YoY respectively. Especially heartening is the rebound of Nykaa Fashion, that has delivered a GMV and revenue growth of 50% YoY and 43% YoY respectively. Fashion now contributes to 25.9% of GMV, and 14.6% at NSV level.”
“There’s been a structural improvement in fulfilment expense as we move to regional warehouses. Our marketing efforts are focussed on the order-conversion ratio, rather than chasing visits alone, which is reflective of the highest-ever conversions of 3.8 percent in beauty personal care, and 1.2 percent for fashion in Q3FY23,” she added.
Nykaa was founded in 2012 by Indian entrepreneur Falguni Nayar and offers over 4,500 brands across beauty, fashion, and personal care.
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