Nykaa Q2 Results: Net profit soars over 70% and margins improve

Consumer technology platform, FSN E-Commerce Ventures, which owns the Nykaa brand, on Tuesday announced the results for the quarter ending September 30, 2024. The company reported a net profit attributable of ₹10.04 crore for the quarter, up 71.6% year-on-year.

The beauty company had posted a profit of ₹5.85 crore in the same quarter last fiscal year. On a quarter-on-quarter basis, the net profit was 4.1% higher.

FSN's consolidated revenue from operation for the three months ended September stood at ₹1,874.74 crore, marking a 24.4% increased over the ₹1,507.02 crore recorded in the corresponding quarter of the previous financial year.

On a QoQ basis, revenue grew by 7% from ₹17,461 million in Jun-24. Gross Profit for the quarter stood at ₹8,210 million, growing 26% YoY (from ₹6,496 million last year) and 9% QoQ (from ₹7,560 million).

On the expense side, marketing expenses saw a sharp 40% YoY increase, totaling ₹236.5 crore as Nykaa continued to focus on brand building and customer acquisition. Fulfilment costs were 9.3% of revenue, a slight improvement from 9.7% in Sep-23, showing better operational efficiency.

Despite increased expenses, Nykaa managed to maintain its profitability, with EBITDA growing 29% YoY to ₹103.7 crore, from ₹80.6 crore in Sep-23 quarter. This translates into an EBITDA margin of 5.5%, slightly up from 5.4% last year.

Nykaa shares price ended 1.73% lower at ₹179.35 on BSE on Tuesday.

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