Nykaa FY24: Despite Q4 Slide, Profit Rises By 89% For Full Fiscal Year

For the quarter ending on March 31, 2024 (Q4 FY24), Nykaa’s consolidated net profit plunged by 48% on a quarter on quarter (QoQ) basis to INR 9.07 Cr from Q3 FY24’s INR 17.45 Cr. 

However, the net profits grew 1.2X on a year-on-year (YoY) basis from Q4 FY23’s INR 4.27 Cr. 

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) also grew 32% YoY to INR 93.3 Cr in the quarter. Its EBITDA margin also grew  marginally on a YoY basis to 5.6% from Q4 FY23’s 5.4%. 

Meanwhile, its operating revenue also declined 6% on a sequential basis to INR 1,667.9 Cr from the previous quarter’s INR 1,788.8 Cr. On a YoY basis, the operating revenue spiked by 28% from INR 1,311.4 Cr. 

However, its total expenses declined on a QoQ basis in the quarter, shrinking 6% to INR 1,655.4 Cr from previous quarter’s INR 1,769.8 Cr. 

For the full fiscal year FY24, the company’s net profits grew by 89% to INR 39.7 Cr from FY23’s 21 Cr. In tandem with the spike in profits, its operating revenue for the full year also grew 24% to INR 6,385.6 Cr from last fiscal’s INR 5,143.8 Cr. 

Nykaa’s Growth Story For FY24

The YoY growth in revenue for the quarter as well as the full fiscal is in line with the expectations that Nykaa disclosed a couple of months back in April. 

At that time, the company also said that it expects to clock in a “early thirties” growth in gross merchandise value (GMV). The GMV growth is also in line with the company’s expectations. The company saw a 32% YoY uptick in its GMV for the quarter, increasing to INR 3,217.2 Cr.

For the full fiscal year, Nykaa said that it witnessed growth across all its verticals. The GMV for its beauty business grew 25% YoY to INR 8,340.9 Cr on the back of its core categories of colour cosmetics, skincare and haircare. Besides, GMV growth for Nykaa’s fashion stood at 27% YoY.

The heaviest GMV growth for Nykaa came through its B2B business Superstore, which witnessed a growth of 84% YoY to INR 597.3 Cr in FY24. The company said that it now commands a meaningful share in its overall business. 

In the quarter, the company also launched a new omnichannel beauty platform Nysaa in the Gulf Cooperation Council (GCC) region. 

The company has opened a physical retail store in Dubai’s City Centre Mirdif via which it sells a selection of international brands, including Kylie Cosmetics, Kay Beauty, Rituals, Stila, among others. It announced that it will be making an investment of $1.9 Mn in Nysaa through its subsidiary FSN International. 

Further, Nykaa also announced a healthy uptick in its owned brands in beauty, which have grown 39% in FY24. 

Specifically, Dot & Key is claimed to have hit INR 600 Cr GMV run rate as of Q4 FY2024 on an annualised basis, scaling 10x since its acquisition.  “Dot & Key is among the top skincare brands across all platforms and has several bestsellers across key categories of moisturiser, sunscreen and lip balms,” the company said in its presentation.