Indian cosmetics-to-fashion retailer Nykaa on Wednesday reported a 59.5 per cent slump in quarterly net profit, hit by a jump in expenses and subdued demand for personal care and fashion products.
In its second earnings report since a blockbuster market debut last year, Nykaa's parent company FSN E-Commerce Ventures Ltd said total costs surged 46.8 per cent year-on-year to Rs 1,067 crore including a big jump in employee benefits expenses.
Nykaa in November posted a 96 per cent slump in quarterly profit in its first post-IPO earnings report.
Founded in 2012 by former investment banker Falguni Nayar, the company became popular by selling cosmetics and grooming products from domestic as well as international brands before foraying into fashion and other products such as pet care and household supplies.
Consolidated net profit for the company fell to Rs 27.93 crore ($3.73 million) in the third-quarter ended Dec. 31, from Rs 68.97 crore a year earlier, FSN said in a regulatory filing.
The company's shares have lost about 16 per cent since November amid a weaker broader market on valuation concerns and expectations of monetary policy tightening by global central banks.
Revenue from operations rose to Rs 1,098 crore from Rs 808 crore.
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