Nykaa's net profit in Q2 results declines to Rs 1.2 crore

FSN E-Commerce Ventures Ltd, which operates online beauty e-commerce platform Nykaa, reported over 95 per cent year-on-year (YoY) decline in consolidated net profit at Rs 1.2 crore for July-September quarter as its expenses shot up. It had posted a profit of Rs 27 crore in the year-ago period.

The company's revenue from operations rose 47 per cent year-on-year (YoY) to Rs 885.3 crore from Rs 603.8 crore in the corresponding quarter of last year. The earnings before interest, tax, depreciation and amortisation (EBITDA) declined 48 per cent to Rs 28.8 crore, while EBITDA margin contracted 585 basis points to 3.3 per cent.

Nykaa's operating expenses grew 92 per cent to Rs 349.4 crore, led by a 286 per cent increase in marketing and advertisement expense to Rs 121.4 crore.

The company said its gross merchandise value (GMV) grew 63 per cent to Rs 1,622.9 crore, with beauty and personal care GMV increasing 38 per cent to Rs 1,185.9 crore and fashion GMV zooming 215 per cent to Rs 437 crore. "Monthly Average Unique Visitors increased to 2.1 crore with YoY growth of 62 per cent in beauty and personal care vertical and to 1.6 crore with YoY growth of 328 per cent in fashion vertical," Nykaa said in a release.