FSN E-Commerce Ventures on February 9 reported a 59.5 percent year-on-year decline in its consolidated net profit at Rs 27.9 crore for the quarter ended December.
The online commerce company's consolidated revenue from operations, however, jumped 36 percent on-year to Rs 1,098.4 crore in the reported quarter.
On a sequential basis, however, the company saw a sharp improvement aided by festive and wedding demand. Nykaa's consolidated net profit jumped sharply from Rs 1.1 crore in the previous quarter while revenues grew 24 percent on-quarter.
The decline in the company's profits on a year-on-year basis was led by higher staff costs and finance costs. The company's employee costs jumped 56 percent on-year, while finance costs increased by 71.5 percent.
Other expenses in the quarter also weighed on profitability as they soared 107 percent year-on-year to Rs 323.9 crore likely due to an increase in marketing expenses during the quarter.
Nykaa said its gross merchandise value grew 49 percent year-on-year to Rs 2,043.5 crore in the reported quarter with beauty and personal care segment leading the way with 32 percent growth.
The company also saw a sharp surge in average monthly unique visitors in the quarter, which grew 39 percent on-year for the beauty and personal care segment and 120 percent in the fashion vertical.
The lifestyle technology company reported a consolidated operating profit of Rs 69 crore for the quarter. However, the consolidated operating margins declined to 6.3 percent from 13.2 percent in the year-ago quarter.
Marketing and advertisement expense was 14 percent of revenue from operations in Q3FY22 versus 7.5 percent in Q3FY21 due to continued focus on building brand awareness and higher acquisition of new customers, Nykaa said.
Shares of the company ended 0.7 percent lower at Rs 1,848.9 on the National Stock Exchange.
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