Nykaa Q4 results: Net profit almost halves to Rs 8.56 cr, revenue up 31%

FSN E-Commerce Ventures, the parent company of online beauty e-commerce platform Nykaa on Friday reported a 49 per cent decline in consolidated net profit at Rs 8.56 crore in the fourth quarter ended 31 March, 2022. The company had posted a net profit of Rs 16.8 crore in the year-ago period.

The company's revenue from operations however, rose 31 per cent to Rs 973.32 crore in the quarter under review as against Rs 740.52 crore in the same quarter last fiscal.

"Nykaa has experienced overall strong performance in FY2022 amidst various macro-economic challenges such as rising inflation, reduction in discretionary spends by consumers, and uncertainty around Covid-19," the company said in a regulatory filing.

Its Gross Merchandise Value (GMV) grew 45 per cent YoY to Rs 179.79 crore in March quarter, while it increased 71 per cent Rs 693.32 crore in FY2022.

The firm's total income also increased 32 per cent to Rs 984.45 crore year-on-year.

For full year, the beauty firm's profit after tax stood at Rs 41.3 crore in FY2022, a decline of 33 per cent from a year-ago period. 

Moreover, the earnings before interest, taxes, depreciation, and amortization or EBITDA was Rs 163.3 crore in fill fiscal year, up 4 per cent while the EBITDA margin of revenue from operations declined to 4.3 per cent in FY2022 vs 6.4 per cent in FY2021, owing to investment in fashion and other businesses for future growth, it added.

Further, Nykaa witnessed a "strong performance ahead of market" in Beauty and Personal Care (BPC). GMV grew 49 per cent YoY to Rs 499.87 crore in FY22 while for March quarter, it increased 29 per cent to Rs 124.85 crore. • Annual Unique Transacting customers grew 49 per cent YoY to 8.4 million as of March 31, 2022, it added.

In fashion, Nykaa's GMV grew 168 per cent to Rs 175.16 crore in fiscal year 2021-2022 and grew 84 per cent to Rs 482.7 crore in Q4. Fashion GMV contributed 25.3 per cent to consolidated GMV. Its Annual Unique Transacting customers grew 182 per cent to 1.8 million as of March 31, 2022 with strong customer acquisition of 1.6 million in FY2022, Nykaa added.

Commenting on the results, Falguni Nayar, Executive Chairperson, MD, and CEO, said, "The year has witnessed a challenging macroeconomic environment, pronounced for discretionary categories like beauty, personal care and fashion. Despite market slowdown, our unique growth story continues, showing the resilience of our business model and long term sustainability by balancing strong revenue growth, responsible unit economics and profitability. We acquired over 6 million new customers across beauty and fashion, and witnessed superior customer retention, with improved metrics across the funnel - from visits to conversions."

"We have expanded our addressable market through new growth engines - speciality retail stores, Nykaa Man, and SuperStore. These businesses, along with our consumer brands portfolio have witnessed increasing momentum through the year. Our consumer brands have recently seen expansion into wellness, activewear and personal care through purpose driven brand acquisitions. We deeply value our shareholders’ faith in us and hold their capital in highest regard. Our investments are always made in getting the building blocks right - such as tech platform, customer experience, assortment - and growing our new and early stage businesses in a sustainable manner with a long term focus," Nayar added.

Shares of Nykaa on Friday closed 0.50 per cent lower at Rs 1,358 apiece on BSE.