E-commerce giant FSN E-Commerce Ventures, popularly known as Nykaa, reported a significant decline of 71.8% in net profit for the quarter ending in March 2023. The company’s net profit stood at Rs 2.4 crore compared to Rs 9 crore in the same quarter of the previous fiscal year.
However, Nykaa’s revenue from operations witnessed a growth of 33.7%, reaching Rs 1,301.7 crore in the reviewed quarter compared to Rs 973.3 crore in the corresponding period last year.
During the quarter, Nykaa’s EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 84% to Rs 70.6 crore, up from Rs 38.4 crore in the same quarter last year. The company’s margins for the quarter were recorded at 5.4%.
Total expenses for Nykaa surged to Rs 1,303 crore during the fourth quarter, compared to Rs 978.6 crore in the previous year’s period. It’s important to note that Nykaa had reported a tax benefit of Rs 1.76 crore in the corresponding quarter of the previous year.
Nykaa’s Business Planning and Consolidation (BPC) segment experienced higher year-on-year growth rates in Q4FY23 compared to Q3FY23, with a 26% increase. The fashion business revenue also saw growth in the late teens, with Fashion Biz rising by 50% in Q3FY23.
On the stock market, Nykaa’s share price closed 2.57% lower at Rs 125 on the BSE (Bombay Stock Exchange). Year-to-date, the company’s stock has declined by 20%.
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