Nykaa, a prominent beauty and fashion ecommerce platform, witnessed a 6% surge in its shares during Wednesday’s trading session following the announcement of its consolidated net profit more than doubling in the third quarter of FY24.
Nykaa shares commenced trading at INR 170.05 apiece on Wednesday, representing a nearly 6% increase compared to the previous close of INR 160.5. However, the stock later surrendered these gains, with each share trading at INR 160.2 on the BSE by 12:29 PM.
The Falguni Nyaar-led company experienced a significant boost in its consolidated net profit, more than doubling to INR 17.4 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24) from INR 8.5 Cr in the corresponding quarter of the previous year. This impressive growth was attributed to a steady enhancement in its fashion business during the festival season.
Continue Exploring: Nykaa continues strong growth trajectory: Q3 net profit doubles YoY to INR 17.4 Cr
In the quarter under review, operating revenue surged by 22% to INR 1,788.8 Cr compared to the INR 1,462.8 Cr recorded in Q3 FY23.
The startup’s revenue also saw a sequential increase of 18.7%, reaching INR 1,507 Cr.
In the reported quarter, the company noted a 25% year-on-year growth in its consolidated Gross Merchandise Value (GMV) within the beauty and personal care (BPC) segment, reaching INR 2,369.7 Cr. This growth was primarily driven by heightened demand for premium BPC brands.
In the third quarter of fiscal year 2024, Nykaa’s fashion division witnessed a noteworthy 40% year-over-year surge in Gross Merchandise Value (GMV), reaching INR 1,012.5 Cr. This segment also generated operating revenue of INR 152.6 Cr for the quarter, marking a 20% rise compared to INR 127.5 Cr recorded in the corresponding period of the previous year.
Nykaa has decided to inject an extra INR 150 Cr into Nykaa Fashion Ltd, its wholly owned subsidiary responsible for managing the company’s fashion sector, through a rights issue. This infusion aims to facilitate the repayment of loans extended by the parent company to its subsidiary.
Furthermore, Nykaa has disclosed plans for the demerger of its B2B platform, ‘Superstore by Nykaa,’ transferring it from the wholly owned subsidiary FSN Distribution Limited to another subsidiary, Nykaa E-Retail Ltd.