Nykaa revenue grew 47% to Rs 885 crore for September quarter as profits declined

FSN E-Commerce Ventures Ltd, the parent company of listed beauty e-tailer saw a 63% year-on-year growth in gross merchandise value (GMV) while the company registered a 10% sequential quarter-on-quarter growth in the period ended September 30, 2021, as per filings made to the stock exchanges on Sunday evening.

For the same period, its consolidated revenues from operations grew 47% year-on-year to Rs 885.30 crore as against Rs 603.8 crore last year. Its sequential growth, i.e. quarter-on-quarter stood at 8% as against Rs 817 crore it earned for quarter ended June 30, 2021. Its profit after tax for the second quarter of FY22 fell to Rs 1.2 crore as against Rs 27 crore it earned in Q2 FY21.

For half year ended September 30, 2021, the company’s revenues grew 91% to Rs 1,702.3 crore as against Rs 8,924 crore for the same period last year.

However, its earnings before interest, tax, depreciation and amortisation or Ebitda stood at Rs 28.8 crore for quarter ended September 30, 2021, a 48% drop from Rs 55 crore in same period last year.

In an interview with ET, last week, post its bumper listing, Nykaa’s founder and CEO
said the company will continue to focus on growth across beauty and fashion businesses.

“It’s a multi-year journey and we believe that over the next five years we will continue to grow both our beauty and fashion businesses multi-fold. Similarly,
the house of brands will also continue to grow, as we become more like a consumer company which has a number of brands within its fold. We are also setting up our e-B2B (business-to-business) vertical — the Super Store where we will sell beauty to retailers,” Nayar said.

The fashion business grew at a faster clip registering a 295% year-on-year growth for the quarter ended September 30, 2021 at Rs 11.5 crore as against Rs 2.9 crore same period last year. Fashion was, however, smaller than the beauty business which has a lion’s share of revenues with Rs 22 crore coming in during Q2FY22 as against Rs 17.1 crore in Q2FY21, clocking a 29% growth, year on year. On a sequential basis, the growth stood at 3% for beauty and 16% for fashion as against the June quarter, the filings show.

The company’s total gross merchandise value stood at Rs 1,622.9 crore for quarter ended September 30, 2021 as against Rs 997.1 crore in same period last year, a 63% jump. On a sequential basis, the growth was at 10%.