Nykaa Q4 Results 2024: Net Profit Jumps to ₹9 crore, Revenue up 28%

Synopsis

FSN E-Commerce Ventures reported a consolidated net profit of ₹6.93 crore for the quarter ending on March 31 (Q4) in the financial year 2023-24 (FY24).

Quarter Result Performance

In the fourth quarter (Q4) of the 2023-24 fiscal year (FY24), FSN E-Commerce Ventures, the parent company of Nykaa, reported a consolidated net profit of ₹6.93 crore. This represented a significant increase of nearly 187.4% compared to the net profit of ₹2.41 crore reported in the corresponding quarter of the previous year.

Falguni Nayar's company achieved a revenue of ₹1,668 crore in the recent period, marking a 28% increase compared to the ₹1,302 crore earned during the same period last year.

“In Q4 FY24, consolidated GMV grew 32% YoY to ₹3,217.2 crore, as all the businesses continue to deliver superior performance. We continue to drive improvement in profitability. Q4 FY24 EBITDA stood at ₹93.3 crore with EBITDA margin at 5.6%,” Nykaa said.

“EBITDA margin adjusted for ESOP expenses, new business (GCC operations) and corporate restructuring expenses expanded to 6.7% for the quarter vs 5.5% a year ago. This adjusted EBITDA growth of 56% YoY was driven by direct and indirect costs efficiencies with fulfilment expense and employee expenses witnessing improvement from last few quarters,” the company added.

"The consolidated BPC GMV growth for Q4 FY2024 was 30 per cent YoY, highest growth in the last 6 quarters, with accelerated customer acquisition driving superior order growth. This was a result of superior performance in our core categories of colour cosmetics, skincare and haircare as well as strong offtake of emerging categories such as fragrances and bath & body care," it stated. 

Nykaa's beauty business achieved $1 billion (₹8,340.9 crore) in Gross Merchandise Value (GMV) during FY24, a 25% year-over-year increase. In the fourth quarter, consolidated BPC GMV grew by 30% year-over-year, marking the highest growth in the last six quarters. This strong performance was driven by accelerated customer acquisition, leading to increased order volume.

Revenue from other businesses jumped 90% year-on-year to ₹146 crore, while GMV for the segment increased 68% year-on-year to ₹255 crore.

Nykaa Commentary

In an April update, the company boasted that its BPC division was outpacing industry growth. This statement came amidst heightened competition from rivals like Reliance Retail's Tira and Walmart's Myntra, according to analysts.

The company's board has authorized a ₹20 crore investment in FSN International, its fully-owned subsidiary, through a rights issue. Additionally, FSN International intends to invest approximately $1.9 million in an overseas subsidiary through Nessa International Holdings Ltd.

About Nykaa

Since its inception in 2012, Nykaa has quickly emerged as India’s largest omnichannel beauty destination. With 1200+, 100% genuine brands, and six warehouses across India that stock lakhs of well curated, well priced products, Nykaa offers a comprehensive selection of makeup, skincare, hair care, fragrances, personal care, luxury and wellness products for women and men.