06-Nov-2023
2 mins read
Nykaa, one of India’s leading e-commerce beauty and fashion retailers, has released its financial results for the second quarter of the financial year 2024. The company has reported robust performance, with a significant increase in net profit and revenue.
Impressive Financial Figures
In Q2 FY24, Nykaa recorded a consolidated net profit of Rs 7.80 crore, marking a remarkable 50.28% increase compared to Q2 FY23. This substantial growth is also evident compared to Q1 FY24, where the net profit rose by 43.91% from Rs 5.42 crore.
The company’s revenue from operations showed a healthy 22.44% increase, reaching Rs 1,507 crore during the quarter under review, as opposed to Rs 1,230.8 crore in the corresponding period last year. Even when comparing Q2 to Q1 in FY24, there was a notable 5.99% rise in revenue from operations, which was Rs 1,421.8 crore.
Total Income and Margin Expansion
Nykaa’s total income for Q2FY24 surged to Rs 1,515.6 crore, demonstrating a substantial YoY growth of 22.49%. On a QoQ basis, the total income also increased by 6.09%. In Q1 FY24, the total income stood at Rs 1,428.5 crore.
The company attributed part of its success to an expansion in the EBITDA margin, which reached 5.4% for Q2 FY24. This represented a remarkable 32% YoY growth, driven by cost efficiencies in both direct and indirect aspects of the business.
Resignations of Key Executives
Nykaa has experienced a few notable changes in its executive team, with six executives resigning, including the Chief Marketing Officer (CMO), Shalini Raghavan. Nykaa’s founder and CEO, Falguni Nayar, has assumed direct oversight of the marketing function. The other executives who have left include Kingshuk Basu, Sumant Kasliwal, Aditya Sandhu, Sachin Kataria, and Shantanu Prakash, who hold various roles within the organization.
Segment-wise Performance
Nykaa’s fashion business reported a substantial YoY growth of 28%, with consolidated revenue from operations reaching Rs 130.5 crore in Q2 FY24. The company noted improved profitability in the fashion segment, with the contribution margin as a percentage of net sales value (NSV) at 4.7% in Q2 FY24, compared to 2.3% in Q2 FY23. This was supported by enhancements in pre-delivery leakages and marketing expenses.
The “new businesses” segment of Nykaa, which includes its superstores, demonstrated a remarkable NSV of Rs 98.6 crore during the second quarter, growing by 105% on a YoY basis.
Market Performance
Nykaa’s stock price closed at Rs 147.45 on November 6th on BSE, showing a 5.06% increase compared to the previous day’s close. The positive market reaction reflects investor confidence in the company’s strong financial results.
Nykaa’s impressive Q2FY24 results, characterized by a 50% YoY jump in net profit and a 22% increase in revenue, underscore the company’s robust growth and market position in the beauty and fashion e-commerce sector. The expansion of the EBITDA margin and the performance of its various business segments highlight the company’s strategic strength and adaptability. Despite recent executive resignations, Nykaa’s future outlook appears promising.