Nykaa Q2 results: FSN E-Commerce Ventures Ltd, which runs online fashion retailer Nykaa, on Tuesday reported a 333 percent increase in net profit in the September quarter, boosted by strong demand for its products ahead of the holiday season.
Quarterly revenue from operations was up 39 percent year-on-year to Rs 1,230.8 crore.
In a scholarship application, Nykaa said its EBITDA improved to Rs 61 crore versus Rs 28.8 crore in the same period a year ago. Consolidated margin also improved to 4.9 percent, from 3.3 percent year-over-year.
Furthermore, Nykaa has expanded the number of its own physical stores to 124 stores, including two new Fashion stores, with a total surface area of 1.2 Lacs sq. ft. in 53 cities, on September 30, 2022.
“Our online and offline presence in Beauty has driven strong growth with improved margins. Consumer demand for premium beauty, personal care and wellness shows signs of resilience as we prepare for a promising H2 FY23. Our focus on curation and discovery in fashion is clear as new season merchandise accounted for 24% of Nykaa Fashion GMV; international brands are at 13 percent of the GMV western apparel category in Q2 FY23. The digital marketing costs for the fashion industry are slightly higher than during the covid period, keeping the marketing costs at the level of the second quarter of 22 years,” said Falguni Nayar, Executive Chairperson, MD and CEO.
Earlier this month, Nykaa announced that the board of directors has approved the issuance of bonus shares of the company in the ratio of 1:5, ie the company will issue a bonus of 5 shares for every 1 share held on the record date. The company has revised its record date for determining members eligible for bonus shares to November 11, 2022.
“We refer to our letter dated October 3, 2022 regarding the issuance of bonus shares of the company in the ratio of 5 (five) fully paid-up Shares of Rs 1/- each for every 1 (one) fully paid-up Share of Rs 1/ – each, subject to shareholder approval by ballot paper and inform that the board of directors of the company, in accordance with Regulation 42 of the SEBI Listing Regulations, has determined Friday 11 November 2022 as the ‘Record Date’ to determine which members are eligible for Bonus Equity Shares,” the company informed the exchanges.
After falling more than 52 percent from a 52-week high at Rs 2,574, shares of Nykaa traded 4.5 percent higher on the exchanges in intraday trading following the announcement of the results.
Nykaa’s pre-IPO lock-in period ends on November 9. About 67 percent or 31.9 crore shares of Nykaa are likely to open for trading on the lock-in expiration day.
Nykaa was founded in 2012 by Falguni Nayar. Shares of the Mumbai-based company were listed on NSE and BSE on November 10 last year at Rs 2001, a premium of 77.87 percent. Nykaa IPO was subscribed 81.78 times and the price range was set at Rs 1,085-1,125 per share.
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