Nykaa Ltd, an online clothing and cosmetics store, posted a combined net profit of 28 crores for the quarter ended December 31 on Wednesday. This is a 59 percent decrease from the previous year’s figure of 69 crore, due to an increase in expenditures and a drop in sales for personal care and fashion items. Profit after tax doubled sequentially, from 12 crores in the previous quarter.
Revenue from operations increased by 36% in the reporting quarter to 1,098 crores, up from 808 crores in the previous year’s equivalent period.
Nykaa shares dipped 0.70 percent to finish at 1,848.90 a share on the NSE on Wednesday. The stock has dropped by approximately 8% in the previous month.
The cosmetics company’s costs increased by 47 percent to 1,067 crores in the December quarter, up from 727 crores the previous year.
The overall GMV (gross merchandise value) increased by 26% sequentially and by 49% year on year to 2,043 crores in the third quarter, owing to good operational metrics.
During the third quarter under review, the GMV of the beauty and personal care segment (BPC) increased by 32% year on year to 1,533 crores, while that of the fashion segment increased by 137% year on year to 510 crores.
In Q3FY22, income from marketplace services increased by 154 percent year on year, mostly due to increases in fashion GMV. Meanwhile, ad income increased by 53% year on year during the same time, owing to a rebound in brand advertising spending.
In the reporting quarter, the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) was 69 crore, while margins fell year on year to 6.3 percent, owing mostly to greater marketing expenditures. In the third quarter, the average monthly unique visitors in the BPC vertical increased by 39% year on year to 22 million, while visitors in the fashion vertical increased by 120% year on year to 16.4 million.