InvestorQ : Can you tell me what happens to the Nykaa stock after it reported a sharp drop in profits?
NISHA Nayak made post

Can you tell me what happens to the Nykaa stock after it reported a sharp drop in profits?

Answer
image
Priyanka N answered.
2 weeks ago
Follow

FSN E-Commerce Ventures, the holding company that owns and operates Nykaa, reported 46.62% revenue growth for Sep-21 quarter at Rs.885.26 crore. GMV or the Gross Merchandise Value was up 63% to Rs.1,623 crore driven by 38% growth in beauty and personal care and a whopping 215% growth in fashion products. An important metrics of the monthly average unique visitors or MAUV was up 62% yoy at 21 million in the beauty segment and 328% growth at 16 million in the fashion segment.

Net profits did fall 95% to Rs1.17 crore but then most of the ecommerce and digital plays like Nykaa are never about profits in the initial years. The fall in profits were due to a spike of 57% in fulfilment expenses, 33% in employee costs and a huge 286% spike in marketing and advertisement expenses. This compressed the EBITDA margins by almost two-thirds to 3.1%. However, markets are unlikely to be perturbed as long as top line is impressive.

0 Views