Beauty and fashion firm FSN E-Commerce Ventures, which operates the Nykaa brand and retail platform, on Tuesday logged a 98% jump in its December quarter net profit to Rs 16.2 crore, on the back of strong festive and wedding season demand.
The company had reported net profit of Rs 8.2 crore last year. Revenue from operations rose 22.3% to Rs 1,789 crore against Rs 1,463 crore in the corresponding period last year.
Earnings before interest tax depreciation and amortisation (Ebitda) increased 26.4% year-on-year to Rs 99 crore in Q3FY24, while Ebitda margin stood at 5.5% in the quarter under review versus 5.3% reported last year.
The sales uptick showed in Nykaa’s gross merchandise value (GMV), which grew 29% y-o-y to Rs 3,619.4 crore in the December quarter, with all divisions contributing to growth, the company said. Nykaa’s flagship beauty and personal care (BPC) division, saw GMV growing 25% to Rs 2,369.7 crore from Rs 1,901.4 crore reported last year.
Nykaa Fashion, a relatively young business, registered a GMV growth of 40% to Rs 1,012.5 crore from Rs 7,24.4 crore reported last year. “The rise of disposable incomes driving premiumisation is evidenced strongly by the demand for luxury products witnessed during this Pink Friday. Premium and Luxury brands outperformed contributing 1/3rd to overall GMV and growing at 32% y-o-y,” the company said in a statement on Tuesday.
The average order value (AOV) across Nykaa’s businesses also saw strong growth, led by the festive and wedding season demand. The AOV for its BPC business stood at Rs 2,024, up 3% y-o-y. Nykaa Fashion, which caters to a more premium user base, saw its AOV increasing 18% y-o-y to Rs 4,681. While Nykaa’s ‘other’ division had an AOV of Rs 4,027 in Q3, up 9% from 3,709 reported last year.
The company’s physical retail footprint continues to expand, with 39 new stores launched over the last four quarters, totaling 174 stores as of December 31, 2023. The retail business now contributes to over 9% of the overall BPC GMV, the company said.