FSN E-Commerce Ventures, which operates beauty and personal care (BPC) company Nykaa, posted a 50 per cent increase in its net profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Monday, released via an exchange filing. The company logged a net profit of Rs 7.8 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 5.2 crore in the second quarter of the previous fiscal year (FY23).
The company also witnessed a 22 per cent growth in its revenue from operations for Q2FY24 on a year-on-year basis. It posted a revenue of Rs 1,507 crore for the reporting quarter against its Q2 revenue of Rs 1,230.8 crore for FY23. This growth was credited largely to the beauty and personal care (BPC) segment of the company.
The fashion retailer logged an improvement in it’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin which stood at 5.4 per cent in the quarter under review, against 5 per cent in the corresponding period a year earlier. The firm clocked a 32 per cent jump in it’s EBITDA at Rs 80.6 crore for Q2FY24, against Rs 61.1 crore for Q2FY23.
The total expenses for the company stood at Rs 1,502 crore in the reporting quarter, up by 22 per cent from Rs 1,229 crore in the corresponding quarter a year earlier. The BPC segment of the company witnessed strong demand during the flagship sale event held in July. “July 2023 saw a successful flagship sale event “Hot Pink Sale” where GMV for the sale grew by 37% YoY. The sale event witnessed a number of firsts – creating unique engagement with the customers through initiatives such as gamification features and early access for Prive customers,” the firm said.
Further, the company added that discounting in the BPC category increased due “ to proliferation of a number of home-grown brands as well as increasing number of international brands making India a priority market.” The consolidated BPC segment recorded an increase of 23 per cent in it’s gross merchandise value (GMV), and a 19 per cent rise in it’s net sales value (NSV), both on a YoY basis.
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