Nykaa, a prominent player in the beauty and fashion e-commerce sector, witnessed a significant surge in its consolidated net profit during the December quarter (Q3) of the fiscal year 2023-24 (FY24). The company’s net profit more than doubled, reaching INR 17.4 Cr compared to INR 8.5 Cr in the corresponding quarter of the previous year. This remarkable growth was attributed to the steady enhancement of its fashion segment, particularly during the festive period.
The net profit also experienced a significant increase of 123.7% on a quarter-on-quarter (QoQ) basis, rising from INR 7.8 Cr in the previous fiscal quarter, Q2 FY24.
The operating revenue saw a 22% growth, reaching INR 1,788.8 Cr in the current quarter compared to INR 1,462.8 Cr reported in Q3 FY23.
During the third quarter of fiscal year 2024, the company reported a 5.5% expansion in its EBITDA margin, with EBITDA increasing by 26% year-on-year to INR 98.8 Cr, attributed to enhancements in both direct and indirect cost efficiencies, as stated by the company.
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Nykaa announced in a statement that it implemented an ESOP grant targeting critical and top talent across various organizational levels during the quarter. This initiative is currently reflected in the company’s employee expenses. If adjusted for ESOP and new business expenses, the company’s EBITDA margin would have stood at 6.1%.
In Q3 FY2024, the business experienced a 29% year-on-year increase in gross merchandise value (GMV), totaling INR 3,619.4 Cr.
The company reported a 25% year-on-year growth in consolidated gross merchandise value (GMV) within the beauty and personal care (BPC) segment. Additionally, the GMV of Nykaa’s fashion vertical surged by 40% year-on-year.
“Our fashion business is showing consistent improvement in profitability, reflecting our platform strength and quality of our customers,” said Nykaa.
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Nykaa Fashion’s contribution margin as a percentage of net sales value (NSV) improved by 510 basis points, reaching 6% in Q3 FY24, compared to 0.9% in the same quarter of the previous year.