FSN E-Commerce Ventures Ltd, the parent company of fashion and beauty e-tailer Nykaa, has reported a 72% decline in consolidated net profit to Rs 2.4 crore for the quarter ended March 2023.
This is against a net profit of Rs 9 crore in the corresponding quarter of previous fiscal.
Nykaa’s consolidated revenue from operations jumped by 33.7% to Rs 1,301.7 crore in the quarter under review from Rs 973.3 crore in the year-ago period, as per a disclosure with the BSE.
However, its consolidated revenue declined by 13% from Rs 1468.4 crore in the December quarter.
Moreover, for the complete FY23, Nykaa reported a 53.1% YoY decrease in consolidated net profit to Rs 19.26 crore compared to Rs 41.07 crore in FY22.
On the other hand, its revenue from operations on a consolidated level saw a 36.2% increase in FY23, amounting to Rs 5,143.8 crore compared to Rs 3,773.93 crore in the previous fiscal.
Ahead of its Q4 FY23 earnings announcement, Nykaa's shares ended the day 2.57% lower at Rs 125 apiece on the BSE.
Nykaa’s standalone net profit for the March quarter stood at Rs 226 crore, down 54% against Rs 487 crore in the corresponding quarter of the previous fiscal. In the quarter ended December 2022, its standalone net profit stood at 198 crore.
Nykaa, which was founded by Falguni Nayar in 2012, counts investors such as Kravis Investment Partners, Fidelity, Lighthouse, TPG and Steadview Capital as part of its captable.
However, the majority shareholding in the company lies with Sanjay Nayar and Falguni Nayar family offices. The company went public in November 2021. It currently commands a market capitalization of $4.3 billion.
For the past few years, the company has building its physical presence. It currently has more than 140 offline stores in over 55 cities across the country, along with close to 40 fulfilment centres.
In the last fiscal, the company also made several acquisitions as well as equity investments to amp up its play in fashion and e-commerce. It also acquired content delivery platform Little Black Book (LBB) to improve its brand discovery in an all-cash deal.