Nykaa's Q4 results: Profit dips 72%, revenue jumps 33.7%

FSN E-Commerce Ventures Ltd, the parent company of Nykaa on Wednesday announced the March quarter results of FY23. The lifestyle-focused retailer reported a 71.7% year-on-year decline in its consolidated profit to ₹2.4 crore in Q4 as against ₹8.5 crore in the March quarter of FY22. The company's revenue from operations, however, surged by 33.7% to ₹1,301.7 crore during the quarter under review, as against ₹973.3 crore in the same period last year.

The company's EBITDA (earnings before income, tax, depreciation and amortisation) surged 84% YoY to ₹70.6 crore.

On a sequential basis, the company's profit declined 70% quarter-on-quarter (QoQ) as against ₹8 crore in the December quarter. The company's revenue witnessed a sequential decline by 10.9% as against ₹1,468.2 crore in the December quarter. The company's EBITDA declined 9.4% QoQ as against ₹78 crore in the previous quarter.

For FY23, the fashion and beauty platform witnessed a decline in its net profit by 53.3% to ₹19.26 crore as against ₹41.07 crore in FY22. The company's revenue from operations during the year under review stood at ₹5,143.8 crore, registering a decline of 36.2% as against ₹3,773.9 crore in the previous fiscal year. FY23 revenue growth was in line with the company's expectations. It had earlier said that Nykaa's beauty & personal care (BPC) categories witnessed sustained strong demand, partly aided by the 'Pink Love' sale introduced during the quarter.

Ahead of the January-March quarter results, the company's share price on Wednesday was trading 2.9% lower to hit an intraday low of ₹124.50 apiece on the BSE. The scrip closed at ₹125.05, lower by 2.53%. During the session, Nykaa's market capitalisation stood at ₹35,669.85 crore as 3,52,080 shares exchanged hands on the BSE lower than the two-week average of ₹3.74 lakh shares. At the current share price, the company's stocks are trading 51.7% lower than the 52-week high of ₹257.66, which the company hit on June 1, last year. The company's shares are trading 9.3% higher than the 52-week low of ₹114.3, which the company hit on April 26 this year.

Nykaa made its stock market debut in November 2021. According to the Trendlyne data, the promoters of the company (Falguni Nayar, her husband Sanjay Nayar and two children) have reduced their stake in the company to 52.28% from 52.34% in the March quarter. However, foreign institutional investors/foreign portfolio investors have increased their stake to 12.26% from 11.06% during the quarter under review. While mutual funds have increased their stake from 4.06% to 5.14%, institutional investors have increased holdings from 17.41% to 20.21% in the March quarter.