Nykaa Q4 profit more than halves to Rs 7.57 cr

FSN E-Commerce, which operates under the Nykaa brand, on Friday reported a decline of about 57 per cent in its consolidated profit to Rs 7.57 crore for the fourth quarter ended March 2022, mainly account to new investments.

The company had registered a profit of Rs 17.9 crore in the same period a year ago.

Revenue from operations of Nykaa increased by 31.4 per cent to Rs 973.32 crore during the reported quarter, from Rs 740.52 crore in the year-ago period.

The gross merchandise value (GMV) in the beauty and personal care vertical grew by 29 per cent to Rs 1,248.5 crore in the March 2022 quarter from Rs 964.5 crore a year ago.

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The fashion vertical recorded 84 per cent growth during the quarter to Rs 482.7 crore from Rs 262 crore earlier.

"The year has witnessed a challenging macroeconomic environment, pronounced for discretionary categories like beauty, personal care and fashion.

"Despite market slowdown, our unique growth story continues, showing the resilience of our business model and long term sustainability by balancing strong revenue growth, responsible unit economics and profitability," Nykaa Executive Chairperson, MD, and CEO Falguni Nayar said.

For the year ended March 31, 2022, its consolidated profit declined by 33 per cent to Rs 41.28 crore, from Rs 61.64 crore in 2020-21.

However, the annual revenue from operations increased by 54.61 per cent to Rs 3,773.93 crore, compared to Rs 2,452.65 crore in 2020-21.

"We have expanded our addressable market through new growth engines - speciality retail stores, Nykaa Man, and SuperStore. These businesses, along with our consumer brands portfolio have witnessed increasing momentum throughout the year. Our consumer brands have recently seen expansion into wellness, activewear and personal care through purpose-driven brand acquisitions," Nayar said.

The GMV in the beauty and personal care vertical grew by 49 per cent to Rs 4,998.7 crore in 2021-22 from Rs 3,354.2 crore a year ago.

The fashion vertical grew more than two-and-half times to Rs 1,751.6 crore in 2021-22, from Rs 653 crore in 2020-21.