Nykaa’s consolidated net profit zoomed 50% YoY to INR 7.8 Cr in Q2 FY24 compared to INR 5.2 Cr in the year-ago period
Nykaa’s operating revenue jumped 22.4% YoY to INR 1,507 Cr in Q2 FY24
The beauty ecommerce giant opened 13 new beauty stores during the quarter ended September 2023, taking the total store count to 165
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FSN E-commerce, the parent of beauty ecommerce platform Nykaa, released its financial results for the second quarter (Q2) of the financial year 2023-24 (FY24) on Monday (November 6). Here are the key highlights:
Headline Numbers: Nykaa’s consolidated net profit zoomed 50% to INR 7.8 Cr in the quarter ended September 2023 from INR 5.2 Cr in the year-ago period. On a quarter-on-quarter (QoQ) basis, the net profit jumped 44.4% from INR 5.4 Cr.
The company attributed the profitable numbers to solid growth across business verticals and cost-control measures.
Operating revenue grew 22.4% to INR 1,507 Cr in Q2 FY24 from INR 1,230.8 Cr in Q2 FY23. As per historical data analysed by Reuters, this was the slowest year-on-year (YoY) growth in quarterly revenue recorded by the beauty ecommerce giant since listing. This could likely be attributed to intensifying competition in the beauty and personal care (BPC) space. Besides, the festive season began in Q3 this year as against September last year, which might have also affected the revenue growth.
Gross merchandise volume (GMV) saw a 47% YoY growth to INR 2,155.8 Cr during the quarter. EBITDA improved 32% YoY to INR 80.6 Cr in Q2 FY24 on the back of both direct and indirect cost efficiencies.
On the other hand, the beauty ecommerce giant’s overall gross merchandise value (GMV) jumped 25% YoY to INR 2,943.5 Cr in Q2 FY24.
BPC Vertical In Driver’s Seat: The BPC vertical emerged as the main growth engine, contributing 68% to Nykaa’s total GMV in Q2 FY24. The vertical also clocked 10 Mn orders even as average order value (AOV) grew 2% YoY to INR 1,916 in Q2 FY24.
The annual unique transacting customers on the BPC platform rose 18% YoY to 10.7 Mn during the quarter ended September 2023, while total users visits to the vertical stood at 271 Mn.
Nykaa said it has so far earned 79% of its total revenue from existing customers with average annual user spending hovering around the $80 mark. With a cumulative user base of 21 Mn at the end of September 2023, Nykaa’s BPC vertical listed more than 3,600 domestic and international brands on its ecommerce marketplace.
Meanwhile, Nykaa’s in-house beauty brands notched up a GMV of INR 243.8 Cr in Q2 FY24, accounting for 12.2% of the total GMV of the BPC vertical.
Nykaa Fashion At An ‘Inflection Point’: The fashion arm continued to see healthy growth, accounting for nearly 26% of Nykaa’s total GMV in Q2 FY24 at INR 762.8 Cr. While the number of orders on the fashion platform rose 22% YoY to 1.7 Mn during the quarter under review, AOV jumped by 3% YoY to INR 4,061 in Q2 FY24.
The annual unique transacting users grew 30% YoY to 2.8 Mn in Q2 FY24, while total visits to the fashion arm soared to 144 Mn.
Nykaa-owned fashion brands reported a GMV of INR 98.9 Cr in Q2 FY24, accounting for 13% of the total GMV of the fashion vertical.
New Growth Verticals: Apart from BPC and fashion verticals, rest of Nykaa’s businesses contributed 6% to the beauty ecommerce platform’s total GMV during the quarter under review. It notched up a GMV of INR 179.1 Cr in Q2 FY24.
The new growth verticals include the company’s new businesses such as NykaaMan, B2B platform SuperStore by Nykaa and its internal operations.
Number of orders rose to 0.5 Mn while AOV soared to INR 3,541 during the quarter under review. Annual monthly transacting users soared 27% YoY to 0.6 Mn in Q2 FY24.
As per the company, the B2B arm has made ‘significant progress’ towards profitability with GMV rising 1.7X YoY and the number of orders increasing 62% YoY to 2.8 Lakh. SuperStore by Nykaa claims to have served 1.29 Lakh transacting retailers during the quarter spanning 770 cities.
Nykaa Continues Offline Expansion: The beauty ecommerce giant opened 13 new beauty stores during the quarter ended September 2023, taking the total store count to 165. These outlets encompassed an area of nearly 1.6 Lakh sq. ft. and generated a GMV per sq. ft. of INR 3,249 per month.
With more than 10,500 total employees, Nykaa had more than 7,000 suppliers under its belt and 2,500 MSME vendors at the end of the quarter.
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