Beauty products retailer Nykaa on Friday posted a 42.24% year-on-year jump in its consolidated net profit at Rs 5.01 crore during the April-June quarter on the back of good topline growth and operating performance.
Consolidated revenue from operations during the period at Rs 1,148.4 crore was up 40.56% compared to same period last year. The consolidated gross merchandise value (GMV) grew 47% year-on-year to Rs 2,155.8 crore.
The GMV of beauty and personal care segment grew 39% year-on-year to Rs 1,488.8 crore, and fashion segment registered 59% year-on-year growth in GMV at Rs 582 crore in Q1FY23.
The company registered a strong performance on the operating front with Ebitda growing 71% to Rs 46.05 crore and margin expanding by 71 basis points year-on-year to 4%.
“We continued to grow strongly overall with improvement in gross margin and efficiency in fulfilment expense, leading to improvement in overall Ebitda margin year-on-year,” Nykaa said.
Commenting on overall demand scenario, Falguni Nayar, executive chairperson, MD, and CEO said in an earnings call that while there have been many adversities and consumer sentiment is impacted, they also call these quarters as off season in fashion and beauty perspective.
She said that the company is seeing return of offline shopping behaviour and consumer demand for beauty, personal care and wellness is also showing early signs of recovery and the firm is gearing up for a promising festive season this year.
Going ahead, the company’s focus is going to be on investing in Superstore by Nykaa, Nykaa Man and international operations. “In each of these, our efforts are towards building the business model in a sustainable manner. We are witnessing promising revenue growth in these ventures, giving us confidence in our ambitions,” Nayar said.
In beauty and personal care segment, the company will focus on customer acquisition and order volume to drive long term sustainable growth. Whereas, in fashion segment, the company will maintain focus on conversion. Fashion segment received 1.1 million orders during the quarter against 1 million in the preceding one.