Beauty and fashion ecommerce giant, Nykaa, reported a 50% year-on-year (YoY) increase in net profit to ₹7.8 crore in the second quarter of fiscal year 2024 (Q2 FY24). This significant surge was supported by growth across all verticals, with a notable sequential profit rise of 44.4% from ₹5.4 crore in the first quarter of the same fiscal year.
The company's operating revenue also escalated, showing a 22.4% YoY growth to ₹1,507 crore. This indicates an overall improvement in business quality, as the revenue showed a sequential growth from ₹1,421.8 crore.
Nykaa's Gross Merchandise Value (GMV) saw a 25% YoY increase to ₹2,943.5 crore in Q2 FY24, marking a quarter-on-quarter rise of 10.3%. The EBITDA margin expanded to 5.4%, attributed to direct and indirect cost efficiencies achieved by the company.
Despite the gross margin contracting by 221 basis points YoY, it remained stable sequentially, demonstrating resilience in the face of market fluctuations.
FSN E-commerce Ventures, the entity behind Nykaa, also highlighted other key performance indicators. The company's physical retail business expanded with the addition of 13 new stores, raising the total count to 165 outlets. These stores now contribute an impressive 8% to the overall Beauty and Personal Care (BPC) GMV.
Furthermore, Nykaa Fashion, the company's fashion division, reported a consolidated revenue growth of 28% YoY to ₹130 crore (INR100 crore = approx. USD12 million). The second quarter marked a significant increase of 32% in Net Sales Value (NSV) due to a remarkable rise of 30% in Average Unit Transaction Count (AUTC), reaching a total of 2.8 million customers. This success was driven by improved pre-delivery efficiency and reduced marketing expenses.
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