FSN E-Commerce Ventures, which operates under the Nykaa brand, on Tuesday posted a multi-fold increase in consolidated net profit at Rs 5.19 crore for the three months ended September.
The company had posted a net profit of Rs 1.17 crore in the same period a year ago.
Nykaa’s consolidated revenue from operations increased 39 per cent to Rs 1,230.8 crore in the second quarter of the current financial year. In the year-ago period, the same stood at Rs 885.26 crore.
“Our online and offline presence in beauty has delivered strong growth with improving margins. There has been structural improvement in fulfilment costs as we move to regional warehouses.
“Post Covid, our accelerated investments in new store rollouts as well as store upgradation has resulted in improved footfalls and higher same store sales. Consumer demand for premium beauty, personal care and wellness is showing signs of buoyancy,” FSN E-Commerce Ventures executive chairperson, MD and CEO Falguni Nayar said in a statement.
The consolidated gross merchandise value (GMV) of Nykaa grew 45 per cent year-on-year to Rs 2,345.7 crore in the September quarter.
The beauty and personal care (BPC) segment of Nykaa recorded 31 per cent year-on-year growth in annual unique transacting customers to 91 lakh while its GMV grew 39 per cent to Rs 1,630.1 crore in the quarter under review.
Nykaa said that BPC registered 39 per cent year-on-year growth in orders at 84 lakh during the reported quarter.
The fashion segment registered a 43 per cent growth in GMV year-on-year to Rs 599.1 crore.
“Our focus on curation and discovery in fashion is evident, as new season merchandise accounted for 24 per cent of Nykaa Fashion GMV, international brands are at 13 per cent of western wear category GMV in the second quarter (Q2) of FY’23.
“Repeat buyers in fashion now contribute 66 per cent of Q2 FY23 GMV. Digital marketing costs for the fashion business are slightly higher than during Covid period, resulting in marketing costs sustaining at Q2 FY22 levels,” Nayar said.
Also Read: Offbeet Media Group brings Ekalavya Bhattacharya as chief digital officer