InvestorQ : How were the quarterly results of Nykaa for the March 2022 quarter?
Arusha Ray made post

How were the quarterly results of Nykaa for the March 2022 quarter?

2 months ago

FSN E-Commerce India Ltd, the promoter of Nykaa, announced a 49% fall in quarterly net profit for the quarter ended March 2022. Like most of the ecommerce businesses, Nykaa had to take a hit on spike in logistics and fuel costs, which dented the operating margins. In addition, the market spends were also sharply higher as the company fights for a much bigger mindshare in the current market conditions.

At the time of listing, Nykaa was presented as the few ecommerce businesses in India to actually make money. However, since then its profits have been contracting consistently due to cost pressures. The company has also been adding heavily to its shipments and warehouse capacity to address the huge supply chain challenges that the company is currently facing. Nykaa was floated by former investment banker, Falguni Nayyar

However, Nykaa did report a sharp improvement in top line as revenue from operations surged by 31% to Rs973 crore. However, it could have been still better had it not been for inflation dampening purchasing power of Indian customers. Currently, Nykaa enjoys a market share of 28.6% in the domestic online beauty and personal care products space. Its gross merchandise value (GMV) across platforms was up 45% at Rs1,797 crore.

For the fourth quarter, Nykaa also reported a surge in the total number of orders from 6.2 million to 8.6 million on a yoy basis, with solid traction in the fashion segment. There was a 48% spike in fulfilment costs, which actually dented the profits. Net profit for the quarter nearly halved to just Rs8.56 crore for the March 2022 quarter.