FSN E-Commerce Ventures, the parent company of beauty and fashion brand Nykaa, reported a 51 percent year-on-year (Y-o-Y) increase in its net profit to Rs 26.4 crore for the third quarter ended December 31 (Q3 FY25), compared to Rs 17.5 crore in the year-ago period.
The company had posted a profit of Rs 13 crore a quarter ago, according to regulatory filings.
Nykaa’s consolidated revenue from operations grew 27 percent Y-o-Y to Rs 2,267 crore, up from Rs 1,789 crore a year ago and Rs 1,875 crore in Q2 FY25. Revenue growth was in line with the company’s estimates – which were expected to be “higher than mid-twenties,” as per its quarterly revenue update on January 5.
The uptick in revenue was primarily driven by the company’s core beauty vertical, which witnessed accelerated compared previous quarters. The company was also expecting the gross merchandise value (GMV) of this vertical to grow in the low thirties driven by strong momentum across channels – including its e-commerce platform, retail stores, owned brands and eB2B distribution.
The Mumbai-based firm's total expenses grew in tandem with revenue at 26 percent Y-o-Y to Rs 2,228 in the December quarter, up from Rs 1,770 crore in the year-ago period. It reported expenses of Rs 1,859 crore in the previous quarter.
Its largest expense for the quarter came from purchase of traded goods at Rs 1,285 crore in Q3 FY25. Notably, Nykaa managed to keep this expense in check as it grew just as it grew just 4 percent from Rs 1,232 crore in Q3 FY24. The company spent Rs 175 crore on employee costs during the quarter, up 18 percent Y-o-Y.
Nykaa's share price slid 2.3 percent to Rs 169.44 on the NSE at the end of trading on Monday, 10 February, ahead of its Q3 earnings report.
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