Nykaa's net profit jumps 67% YoY in FY24 supported by strong growth and demand

FSN E-commerce Ventures, the parent company of Nykaa, posted a 67% year-on-year (YoY) rise in consolidated net profit for the financial year 2023-24 at Rs 32.2 crore, supported by strong growth and demand in its key segments. 

In a bid to ramp up its expansion plans, the company also announced an investment of Rs 20 crore in FSN International. It also plans to make further investments of up to $1.9 million through FSN International in Nyssa International, an omnichannel beauty platform based in the GCC region.

The Falguni Nayar-led beauty marketplace logged a 24% YoY rise in revenue from operations to Rs 6,385 crore in FY24. The earnings are in line with the company's expectations of mid-twenties YoY growth for the fiscal year, which it had laid out in a previous filing with the exchanges.

During the quarter ended March 31, 2024, Nykaa logged a nearly 3X jump in net profit to Rs 6.93 crore from Rs 2.41 crore reported in the comparable period a year ago. The unicorn also logged a 28% YoY growth in revenue from operations to Rs 1,668 crore during the quarter. 

However, topline and bottomline figures sequentially were lower for the January-March quarter on account of robust demand during the festive season in the third quarter.

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The platform's overall gross merchandise value (GMV)—the monetary value of all its orders—rose 28% YoY to Rs 12,446 crore in FY24. GMV for its beauty and personal care segment (with other verticals being fashion and eB2B marketplace, Superstore) rose 25% YoY supported by strong demand in key categories like makeup and skin, and successful performance during its “Pink Love Sale” in Q4.

Nykaa, which counts Reliance’s Tira and Tata Cliq among its competition, reported earnings before interest, tax amortisation and depreciation (EBITDA) margin of 5.4% for FY24—an improvement from 5% reported a year ago.

Shares of the company closed 0.99% higher at Rs 179.20 apiece.

In a separate exchange filing, the company announced the transfer of the 100% equity stake held in Iluminar Media to Nykaa Fashion and granted in-principle approval to merge the two entities. It also approved the acquisition of the Western Wear and Accessories business through a slump sale from Nykaa Fashion.

A day earlier, Nykaa also granted 4.05 lakh stock options under its Employee Stock Option Policy (ESOP) scheme. Based on the last trading price of Rs 176 apiece on May 21, the value of stock options is around Rs 7.24 crore.