Mumbai-based FSN E-Commerce Ventures, the parent entity of Nykaa, said total income grew 18% sequentially, while profit declined by 25% quarter on quarter.
“The results are good in the backdrop of a lot of adversities,” founder and chief executive Falguni Nayar said during its earnings call on Friday.
“Could one experience better growth for both beauty and fashion if some amount of inflation pressures in consumer sentiment had not been there? Definitely. I think it is what we call an offseason from a beauty and fashion consumption perspective. And with some early signs, which are not so bad, we are very optimistic about this season which is over the next two quarters,” Nayar added.
The company, which had a bumper public market listing in November last year, saw gross merchandise value (GMV) growth of 47% year on year to Rs 2,156 crore.
Of this, the beauty and personal care orders grew 40% on year to 8.1 million while fashion contributed 27% of the consolidated GMV.
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According to the results filed with stock exchanges, the company said it had utilised Rs 405 crore out of the Rs 601 crore it raised through the initial public offering, for repayment, capital expenditure, retail expansion and investment in subsidiaries.
The company acquired and invested in beauty and personal care brands such as Earth Rhythm, Nudge Wellness and Kica in May.
It said on Friday that it had received board approval to acquire Little Black Book (LBB), a lifestyle discovery platform, as it looks to bolster discovery-led retail.
Nykaa said LBB’s content-first approach focusing on fashion, home and beauty categories aligns well with its strategy.
“There could be more acquisitions. We are thoughtful about what we want to add to our portfolio. We are not a fund looking for a gain on the value of the investment we make. We evaluate whether the brand will bring something to our portfolio. The brand has to come in with a strategic objective rather than you want to ride it,” Nayar said during the earnings call.
Nykaa’s stock price has declined 12% in the last three months compared to a 4.25% increase in the benchmark Nifty index.
